Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity

Supply chain disruptions, including trade disputes, regional conflicts, and the COVID-19 pandemic, have highlighted the importance of supply chain resilience. This study focuses on investment decisions related to supply chain resilience, including considerations of supply disruptions, demand surges,...

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Main Authors: Xin Yan, Jian Li, Yanan Sun, Robert De Souza
Format: Article
Language:English
Published: KeAi Communications Co. Ltd. 2025-03-01
Series:Fundamental Research
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Online Access:http://www.sciencedirect.com/science/article/pii/S2667325823003692
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author Xin Yan
Jian Li
Yanan Sun
Robert De Souza
author_facet Xin Yan
Jian Li
Yanan Sun
Robert De Souza
author_sort Xin Yan
collection DOAJ
description Supply chain disruptions, including trade disputes, regional conflicts, and the COVID-19 pandemic, have highlighted the importance of supply chain resilience. This study focuses on investment decisions related to supply chain resilience, including considerations of supply disruptions, demand surges, and demand time sensitivity. The study uses a Stackelberg game model, with the retailer as the leader and the supplier as the follower, to analyze and compare optimal strategies for supply chain participants under different levels of risk. The results show that the severity of risk events impacts the optimal retail price, optimal wholesale price, supply chain recovery time, and expected profits for each participant. The investment in supply capacity enhancement not only expands the ability to meet demand but also encourages suppliers to expedite supply chain recovery, elevate demand fulfillment rates, and enhance the overall return on investment in supply chain resilience. As a result, the resilience of the entire supply chain is fortified. Similarly, it has been found that centralized decision-making leads to lower prices, shorter recovery times and greater supply chain resilience than decentralized decision-making. This study offers theoretical underpinning for corporations to effectively address risky occurrences, ensure supply security, enhance supply chain resilience, and imparts support for governments involved in humanitarian relief efforts.
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spelling doaj-art-db2c238b47fa4333943bb16abf78257e2025-08-20T02:10:09ZengKeAi Communications Co. Ltd.Fundamental Research2667-32582025-03-015249650410.1016/j.fmre.2023.10.019Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivityXin Yan0Jian Li1Yanan Sun2Robert De Souza3College of Economics and Management, Beijing University of Technology, Beijing 100124, China; Research Base of Beijing Modern Manufacturing Development, Beijing 100124, ChinaCorresponding author.; College of Economics and Management, Beijing University of Technology, Beijing 100124, China; Research Base of Beijing Modern Manufacturing Development, Beijing 100124, ChinaCollege of Economics and Management, Beijing University of Technology, Beijing 100124, China; Research Base of Beijing Modern Manufacturing Development, Beijing 100124, ChinaThe Logistics Institute-Asia Pacific, National University of Singapore, Singapore 119613, SingaporeSupply chain disruptions, including trade disputes, regional conflicts, and the COVID-19 pandemic, have highlighted the importance of supply chain resilience. This study focuses on investment decisions related to supply chain resilience, including considerations of supply disruptions, demand surges, and demand time sensitivity. The study uses a Stackelberg game model, with the retailer as the leader and the supplier as the follower, to analyze and compare optimal strategies for supply chain participants under different levels of risk. The results show that the severity of risk events impacts the optimal retail price, optimal wholesale price, supply chain recovery time, and expected profits for each participant. The investment in supply capacity enhancement not only expands the ability to meet demand but also encourages suppliers to expedite supply chain recovery, elevate demand fulfillment rates, and enhance the overall return on investment in supply chain resilience. As a result, the resilience of the entire supply chain is fortified. Similarly, it has been found that centralized decision-making leads to lower prices, shorter recovery times and greater supply chain resilience than decentralized decision-making. This study offers theoretical underpinning for corporations to effectively address risky occurrences, ensure supply security, enhance supply chain resilience, and imparts support for governments involved in humanitarian relief efforts.http://www.sciencedirect.com/science/article/pii/S2667325823003692Supply chain resilienceDemand surgeSupply chain recoverySupply capacity enhancementStackelberg
spellingShingle Xin Yan
Jian Li
Yanan Sun
Robert De Souza
Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity
Fundamental Research
Supply chain resilience
Demand surge
Supply chain recovery
Supply capacity enhancement
Stackelberg
title Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity
title_full Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity
title_fullStr Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity
title_full_unstemmed Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity
title_short Supply chain resilience enhancement strategies in the context of supply disruptions, demand surges, and time sensitivity
title_sort supply chain resilience enhancement strategies in the context of supply disruptions demand surges and time sensitivity
topic Supply chain resilience
Demand surge
Supply chain recovery
Supply capacity enhancement
Stackelberg
url http://www.sciencedirect.com/science/article/pii/S2667325823003692
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AT jianli supplychainresilienceenhancementstrategiesinthecontextofsupplydisruptionsdemandsurgesandtimesensitivity
AT yanansun supplychainresilienceenhancementstrategiesinthecontextofsupplydisruptionsdemandsurgesandtimesensitivity
AT robertdesouza supplychainresilienceenhancementstrategiesinthecontextofsupplydisruptionsdemandsurgesandtimesensitivity