Improved Acquisition for System Sustainment: Multi-sourcing Resilient Supplier Selection Under Stochastic Disruptions
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Authors
Barker, Kash
Ramirez-Marquez, Jose E.
Subjects
Advisors
Date of Issue
2017-05
Date
2017-05
Publisher
Monterey, California. Naval Postgraduate School
Language
Abstract
Recognizing the inevitability of large-scale disruptions, emphasis in supply chain decision making has shifted from prevention and protection to resilience, or the ability to withstand, adapt to, and recover in a timely manner from a disruptive event. Recent work in supply chain resilience has primarily consisted of qualitative frameworks and lessons learned after disruptions. This project addresses resilient supplier selection, a significant concern across industry and government enterprises. This work develops a supplier selection decision framework that includes (i) a multi-objective optimization formulation for multi-sourced supplier selection and (ii) a means to address uncertainty underlying the occurrence of a disruptive event through a Bayesian network-driven measure of disruption likelihood. The model accounts for several resilience strategies such as increasing supplier capacity beyond normal levels as a mitigation strategy to fortify suppliers against disruption, connecting firms to a back-up supplier as a contingency strategy that allows the supplier to adapt its loss by reconfiguring the channels for the movement of materials, and a contingency strategy of having additional recovery resources to enable suppliers to restore lost capacity more quickly.
Type
Report
Description
Series/Report No
Acquisition Research Symposium
Department
Organization
Identifiers
NPS Report Number
UOK-LM-17-199
Sponsors
Naval Postgraduate School Acquisition Research Program
Funder
Format
Citation
Distribution Statement
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.