Supply Chain Resilience Analysis Considering Disruption in the Natural Stone Industry Using a Discrete-Event Simulation Approach

In order to achieve competitive advantages in uncertain situations, one of the big challenges that organizations are faced is the risk reduction through creating resilient supply chains. Supply Chain resilience refers to the ability of supply chain to respond to disruptions. Disruption is an unpredictable event that has different internal and external sources such as natural disasters and operational risks. In this paper, a simulation model has been presented for analyzing the disruption in the natural stone industry supply chain in one of the stone factories in Iran using Arena simulation software. The simulation model has been run 100 times and the simulation time has been assumed to be one year. The validation of the model has been done by comparing the simulation results with actual information by calculating the mean absolute error. Moreover, some scenarios have been made for disruption management and resilience creation in the system. Then, the performance of each scenario was evaluated based on some criteria include fill rate, backorder cost and total cost. Finally, the redundancy scenario was chosen to be run in the real world. The results showed that a backup production line would be set up in the factory to make the system more resilient.