Adaptation-Based Supply Chain Resilience

In this paper, we develop an adaptation-based supply chain resilience framework based on the control theoretic perspective for supply chain planning domain regarding the agility and disruption-resistance to achieve maximal economic performance and stability in supply chains. We propose a detailed analysis of supply chain resilience based on a mutual classification of flexibility and reliability elements. Subsequently, an algorithm of decision-making on supply chain planning regarding ensuring both supply chain reliability and flexibility is presented. The quantitative approaches and formal tools are based on the modern control theory in combination with operations research techniques, global stability, controlled adaptation and the use of attainable sets.

The developed framework and tools which are supporting it allow us to find this balance with regard to supply chain protection and adaptability. Moreover, it makes it possible to take into account individual risk perceptions of managers, different strategies with regard to risk management, and to consider not only supply chain economic performance but also supply chain stability, which is becoming more and more important in ongoing economic transformation.

The developed framework contributes both to the methodical part of SCM and to its practical part where the developed methodical guidelines can be localized for concrete application issues. The framework allows us to approach the issues of mitigating uncertainty and increasing resilience of supply chains from the control theoretic perspective. From the practice point of view, the gained insights provide decision-makers with the possibility to balance reliability and flexibility to achieve maximal economic performance and resilience in supply chains.