A Simulation-Based Evaluation of Combined Resilience Measures to Mitigate Supply Chain Disruptions

The motivation for this paper is to address the critical knowledge gap in understanding the effectiveness of various supply chain resilience practices, both individually and in combination, against the backdrop of increasingly frequent and diverse global supply chain disruptions. This research seeks to provide a deeper, quantitative understanding of resilience strategies tailored to specific disruption scenarios, enhancing the ability of supply chains to adapt and respond effectively to dynamic global challenges. To achieve this objective, a simulation-based approach is employed, providing a robust foundation for analysis and comparability. Using the Monte Carlo method, 240 combinations of resilience practices are simulated 10,000 times each for five different disruptions (supply disruption, production shutdown, inventory destruction, logistics interference and demand shift), creating a comprehensive dataset for evaluation. The findings of this paper are the identification of varying degrees of effectiveness in individual and combined supply chain resilience practices tailored to specific types of disruptions. For industry professionals, this paper serves as a practical guide for assessing and refining their own resilience strategies. The insights derived from the simulations offer a tangible framework for organizations to enhance their preparedness, responsiveness, and overall resilience in the face of disruptions.