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  4. Building up Resilience in a Pharmaceutical Supply Chain through Inventory, Dual Sourcing and Agility Capacity
 
research article

Building up Resilience in a Pharmaceutical Supply Chain through Inventory, Dual Sourcing and Agility Capacity

Lucker, Florian
•
Seifert, Ralf W.  
2017
Omega-International Journal Of Management Science

This paper is inspired by a risk management problem faced by a leading pharmaceutical company. Key operational risk mitigation measures include Risk Mitigation Inventory (RMI), Dual Sourcing and Agility Capacity. We study the relationship between these three measures by modeling the drug manufacturing firm that is exposed to supply chain disruption risk. The firm determines optimal RMI levels for assumed Dual Sourcing and Agility Capacity. We quantify the decrease in RMI levels in the presence of Dual Sourcing and Agility Capacity. Furthermore, using an example, we analyze RMI, Dual Sourcing and Agility Capacity decisions jointly. It turns out that RMI and Agility Capacity can be substitutes as long as no Dual Source is available. Once the Dual Source is available, Agility Capacity and Dual Sourcing appear to be substitutes. We further show that for long disruption times, the optimal Dual Source production rate may decrease in the disruption time. Within our modeling framework, we introduce an operational metric that quantifies Supply Chain Resilience. Supply chain disruptions can have a severe business impact and need to be managed appropriately. (C) 2017 Elsevier Ltd. All rights reserved.

  • Details
  • Metrics
Type
research article
DOI
10.1016/j.omega.2017.01.001
Web of Science ID

WOS:000412964700010

Author(s)
Lucker, Florian
Seifert, Ralf W.  
Date Issued

2017

Published in
Omega-International Journal Of Management Science
Volume

73

Start page

114

End page

124

Subjects

Risk

•

Operations management

•

Inventory control

•

Application

Editorial or Peer reviewed

REVIEWED

Written at

EPFL

EPFL units
TOM  
Available on Infoscience
November 8, 2017
Use this identifier to reference this record
https://infoscience.epfl.ch/handle/20.500.14299/141901
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