Stochastic Goal Programming of Supply Chain under Disruption

Sammanfattning: The spread of COVID-19 pandemic in the world and the importance of controlling it in all regions have made managing this crisis a great challenge for all countries. The devastating effect on global automotive supply chains due to the disruptions has resulted in losses and shut down of production facilities owing to government restrictions due to the spread of infections leading to supply breakdown across all tiers of supply chain. It has resulted in shortage of crucial components to the automobile industry. A stochastic goal programming model is developed to incorporate disruptions in the supply chain. The model is used to simulate the current crisis of COVID-19 as numerical cases. Supply chain resilient strategy such as China Plus One strategy that involves diversification of supplier base to other locations along with China is analysed. The key finding is that a China-Plus-One strategy appears to be beneficial to both parties involved, organizations that seek to pursue it for reasons of risk diversification, cost reduction or avoidance of overreliance on China and for Plus-One host economies which gain the benefits of FDI. The contribution of the study is in integrating the supply chain resilience literature and operational research tools to model a global supply chain under uncertainty and making a case for change in supply chain strategy from efficient supply chain to resilient supply chains. The study attempts to support the implementation of the China Plus One Strategy as the most suitable resilient strategy post COVID-19.