Designing and Optimizing Supply Chain Networks for Resilience Using Ecological Network Analysis

Abstract

Traditional supply chain policies and design efforts, such as lean-manufacturing, prize efficiency overall other factors and are being challenged as supply chains struggle to bounce back from recent disruptions. Supply chain design guidelines that address resilience require a balanced approach between efficiency and redundancy, one that presents flexibility in a way that acknowledges profit requirements. Ecological Network Analysis reveals a unique balance of pathway efficiency and redundancy within ecosystems. This balance results in efficient steady-state operations and survival upon disruption. Supply chain networks are evaluated here using the same ecological analysis, providing design guidelines for achieving a balanced system-level resilience. Significant insights include that the validity of ecologically inspired supply chain design is contingent on the supply chain’s properties and that under the right conditions, the ecological balance of efficiency and redundancy can vastly improve the performance of supply chains during disruptions.