Creating Supply Chain Networks: A Critical Review

This paper provides an analysis of Supply Chain Network (SCN) design problems under uncertainty, and it presents a critical review the optimization models proposed in the literature to help design robust value-creating SCN. It points out some drawbacks and missing links in the literature, and provides motivations for the development of a comprehensive SCN design methodology. The paper reviews key random environmental factors and discusses the nature of major disruptive events threatening SCN, through an analysis of supply chains uncertainty sources and risk exposures. It also discusses relevant strategic SCN design evaluation criteria, and it reviews their use in existing models. It argues that the assessment of SCN robustness is necessary to ensure sustainable value creation. Several definitions of robustness, responsiveness and resilience are reviewed, and the importance of these concepts for SCN design is discussed.