Integrating effective flexibility measures and resilience to mitigate supply chain risk

In today’s highly globalized and interconnected world, an end-to-end view of supply chain is vital to understand and manage supply chain risks. These risks are classified broadly into two categories: operational risk and disruptive risks. The firms have to plan their strategy in a way in which they can overcome these risks and fulfill the customers demand. In order to maintain the supply chain operations under the loss of some structures against these mentioned disruptions, supply chain network needs to be resilient. Thus, to mitigate the supply chain risk, the present study improves the supply chain resilience by strategically incorporating supply chain flexibility. The objective of the model is to maximize resilience and the upstream supplier flexibility, internal manufacturing flexibility and logistics flexibility are formulated in the constraints. The model is a non-linear model. Leading companies are looking into higher supply chain flexibility so as to compete in the dynamic customer oriented market. Our problem considers multiple suppliers, multiple plants, multiple distribution centres and multiple retailers.