Resiliency of Mutualistic Supplier-Manufacturer Networks

Abstract

Abstract Current Supplier-Manufacturer (SM) networks are highly complex and susceptible to local and global disruptions, due to connectivity and interdependency among suppliers and manufacturers. Resiliency of supply chains is critical for organizations to remain operational in the face of disruptive events. Existing quantitative analyses oversimplify the mutualistic nature of SM networks, in which failure of individual entities affects not only the directly connected entities but also those connected indirectly. In this work we investigate resiliency of SM networks using the quantitative methods employed to study mutualistic ecological systems. Much like in ecological systems, catastrophic failures of SM networks are difficult to predict due to high dimensionality of their interactive space. To address this, first we create a bipartite representation and generate a multidimensional nonlinear model that captures the dynamics of a SM network. We transform the multidimensional model into a two-dimensional model without sacrificing the model’s ability to predict the point of collapse. We extensively validate the model using real-world global automotive SM networks. We observe that the resiliency of a SM network depends on both the network structure and parameters. The current work offers a means for designing resilient supply chains that can remain robust to local and global perturbations.