The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry

Long and complex supply chains are vulnerable to disruptions. One way to solve this problem is to successfully manage supply chain integration (SCI). A system dynamics simulation is thus applied to study a cheese supply chain with three individual firms: a producer, a logistics service provider (LSP...

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Main Authors: Quan Zhu, Harold Krikke, Marjolein C. J. Caniëls
Format: Article
Language:English
Published: MDPI AG 2021-04-01
Series:Logistics
Subjects:
Online Access:https://www.mdpi.com/2305-6290/5/2/19
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author Quan Zhu
Harold Krikke
Marjolein C. J. Caniëls
author_facet Quan Zhu
Harold Krikke
Marjolein C. J. Caniëls
author_sort Quan Zhu
collection DOAJ
description Long and complex supply chains are vulnerable to disruptions. One way to solve this problem is to successfully manage supply chain integration (SCI). A system dynamics simulation is thus applied to study a cheese supply chain with three individual firms: a producer, a logistics service provider (LSP), and a retailer. Our purpose is to study the effects of SCI strategies with different dimensional focuses, i.e., information integration (Scenario 1), relational integration (Scenario 2), and operational integration (Scenario 3), on the recovery of three types of disruptions, i.e., a producer capacity disruption, an LSP capacity disruption, and a demand disruption. Tests of parameter scenarios are further applied to provide solutions for supply chains using different strategies. Our results indicate that Scenario 3 is the best practice, regardless of any type of disruption, while Scenario 1 usually achieves the worst performance. This is consistent with an evolutionary perspective of supply chain integration: information integration gives firms a competitive advantage as the first step. Working as partners to share the most appropriate information leads to greater benefits. We extend this perspective by showing that further elimination of information delay helps the supply chain achieve the best performance.
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spelling doaj.art-5ed7b876023b4d74bfbe5dfa712121752023-11-21T13:42:16ZengMDPI AGLogistics2305-62902021-04-01521910.3390/logistics5020019The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese IndustryQuan Zhu0Harold Krikke1Marjolein C. J. Caniëls2Sustainable International Business, International Business School Maastricht, Zuyd University of Applied Sciences, 6217 HB Maastricht, The NetherlandsFaculty of Management, Open Universiteit, 6419 AT Heerlen, The NetherlandsFaculty of Management, Open Universiteit, 6419 AT Heerlen, The NetherlandsLong and complex supply chains are vulnerable to disruptions. One way to solve this problem is to successfully manage supply chain integration (SCI). A system dynamics simulation is thus applied to study a cheese supply chain with three individual firms: a producer, a logistics service provider (LSP), and a retailer. Our purpose is to study the effects of SCI strategies with different dimensional focuses, i.e., information integration (Scenario 1), relational integration (Scenario 2), and operational integration (Scenario 3), on the recovery of three types of disruptions, i.e., a producer capacity disruption, an LSP capacity disruption, and a demand disruption. Tests of parameter scenarios are further applied to provide solutions for supply chains using different strategies. Our results indicate that Scenario 3 is the best practice, regardless of any type of disruption, while Scenario 1 usually achieves the worst performance. This is consistent with an evolutionary perspective of supply chain integration: information integration gives firms a competitive advantage as the first step. Working as partners to share the most appropriate information leads to greater benefits. We extend this perspective by showing that further elimination of information delay helps the supply chain achieve the best performance.https://www.mdpi.com/2305-6290/5/2/19supply chain integrationsystem dynamicsdisruption recoverycheese industry
spellingShingle Quan Zhu
Harold Krikke
Marjolein C. J. Caniëls
The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry
Logistics
supply chain integration
system dynamics
disruption recovery
cheese industry
title The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry
title_full The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry
title_fullStr The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry
title_full_unstemmed The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry
title_short The Effects of Different Supply Chain Integration Strategies on Disruption Recovery: A System Dynamics Study on the Cheese Industry
title_sort effects of different supply chain integration strategies on disruption recovery a system dynamics study on the cheese industry
topic supply chain integration
system dynamics
disruption recovery
cheese industry
url https://www.mdpi.com/2305-6290/5/2/19
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