Supply Chain Resilience Optimization with Agent-Based Modeling (SCROAM): A Novel Hybrid Framework

Abstract

Supply chains are vulnerable to an array of exogenous disruptions, including operational contingencies, natural disasters, terrorism, and political and geopolitical instability. In order to ensure resilience to these disruptions, supply chains can use mitigation strategies to minimize risk and maximize recovery. Modeling approaches can be utilized to determine the most appropriate mitigation strategies for a specific scenario; however, there is currently no recognized modeling framework which can be applied to all supply chain sectors. This paper describes the key disruption risks to supply chains; the resilience and optimization strategies and performance metrics employed by supply chains to mitigate these risks; and the applications of simulation modeling in supply chain management. We present a hybrid framework for using agent-based modeling, alongside early warning systems, many objective optimization and option awareness analysis, to manage exogenous risks for a non-specific supply chain.