Retail supply chain network redesign based on multiple resilience capabilities

The increasing trend of supply chain disruptions in the recent decades has increased the importance of considering resilience strategies in supply chain network design/redesign problems. The present study provides a scenario-based mixed integer two-stage stochastic programming model for dealing with operational and disruption risks in a retail supply chain network redesign problem. The mode covers both pre-disruption and post-disruption decisions jointly. Five resilience strategies, including proactive, reactive, and chain design quality aspects (i.e. facility fortification, safety stock inventory holding, using excess capacity at some critical nodes of the network, using the direct to store delivery as the shipping strategy and multiple covering of retail stores), are considered. The model is applied for a case study in the retail industry. Several sensitivity analyses are carried out from which useful managerial insights are drawn to be used by top managers. The results show the positive effect of applying resilience strategies on the total cost reduction.