TY - GEN
T1 - Supply chain resilience under a performance-based contract
AU - Zavala, Araceli
AU - Nowicki, David
AU - Ramirez-Marquez, Jose E.
N1 - Publisher Copyright:
© ESREL2020-PSAM15 Organizers. Published by Research Publishing, Singapore.
PY - 2020
Y1 - 2020
N2 - Supply chain managers are looking for more cost-effective ways to satisfy demand. However, unexpected events put at risk their profit margins and even more if suppliers are immersed in a performance-based contract (PBC). Under a PBC, the supplier's profit is linked to outcomes and performance instead of solely providing products. To improve a supplier's performance, increasing resilience has shown benefits to mitigate the effects of disruptive events. Thus, this research focuses on understanding the vulnerability of two highly interrelated systems, a primary system (PS) and its corresponding support infrastructure (SI) necessary to sustain the proper operation of the PS, such as those found in the aerospace, defense, utilities, and construction industries. The model demonstrates not only the post-disruption resilience at each support infrastructure node along with the investment necessary to restore the network but also an adequate design for the PS using the redundancy allocation problem. The objective is to maximize the supplier's profit under contractual constraints when facing disruptive events.
AB - Supply chain managers are looking for more cost-effective ways to satisfy demand. However, unexpected events put at risk their profit margins and even more if suppliers are immersed in a performance-based contract (PBC). Under a PBC, the supplier's profit is linked to outcomes and performance instead of solely providing products. To improve a supplier's performance, increasing resilience has shown benefits to mitigate the effects of disruptive events. Thus, this research focuses on understanding the vulnerability of two highly interrelated systems, a primary system (PS) and its corresponding support infrastructure (SI) necessary to sustain the proper operation of the PS, such as those found in the aerospace, defense, utilities, and construction industries. The model demonstrates not only the post-disruption resilience at each support infrastructure node along with the investment necessary to restore the network but also an adequate design for the PS using the redundancy allocation problem. The objective is to maximize the supplier's profit under contractual constraints when facing disruptive events.
UR - http://www.scopus.com/inward/record.url?scp=85107310396&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=85107310396&partnerID=8YFLogxK
U2 - 10.3850/978-981-14-8593-0_4008-cd
DO - 10.3850/978-981-14-8593-0_4008-cd
M3 - Conference contribution
AN - SCOPUS:85107310396
SN - 9789811485930
T3 - Proceedings of the 30th European Safety and Reliability Conference and the 15th Probabilistic Safety Assessment and Management Conference
SP - 3741
BT - Proceedings of the 30th European Safety and Reliability Conference and the 15th Probabilistic Safety Assessment and Management Conference
A2 - Baraldi, Piero
A2 - Di Maio, Francesco
A2 - Zio, Enrico
T2 - 30th European Safety and Reliability Conference, ESREL 2020 and 15th Probabilistic Safety Assessment and Management Conference, PSAM15 2020
Y2 - 1 November 2020 through 5 November 2020
ER -