Designing a construction supply chain model using backup supplier aiming at optimizing resiliency against disruption
Abstract
Resilience is a topic that has recently emerged concerning the basics of the construction project supply chain and we can consider it as a response to disruption in the supply chain of the project. Disruption also is an unavoidable reality in today’s complex and dynamic construction supply chain, the occurrence of which can cause irretrievable damages to the system, such as financial losses. Successful companies seek to minimize disruption and maintain adequate supply chain performance before disruption occurs, rather than looking for costly and challenging post-disruption solutions. This paper covers this gap by proposing a scenario-based mixed integer-programming model aiming to minimize logistics costs and delays, while scheduling projects to address selecting the appropriate supplier at risk of disruption. So far, this quantitative view was not presented in discussions about disruptions in the project supply chain, therefore different scenarios are applied in the process to validate the model. To improve its resilience level, this model benefits from back-up suppliers’ strategy. This study focuses on providing the required materials for the project site in an emergency without incurring additional costs using a back-up supplier. Results reveal the model’s suitability in confronting the unavailability of a supplier due to disruption.
Keyword : multi-projects supply chain, project scheduling, primary supplier selection, back-up supplier selection, disruption, resilience, construction project
How to Cite
Badkoubeh, M., & Ghannadpour, S. F. (2024). Designing a construction supply chain model using backup supplier aiming at optimizing resiliency against disruption. Journal of Civil Engineering and Management, 30(7), 614–631. https://doi.org/10.3846/jcem.2024.21450
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Mehrjerdi, Y. Z., & Shafiee, M. (2021). A resilient and sustainable closed-loop supply chain using multiple sourcing and information sharing strategies. Journal of Cleaner Production, 289, Article 125141. https://doi.org/10.1016/j.jclepro.2020.125141
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Qi, X., Bard, J. F., & Yu, G. (2004). Supply chain coordination with demand disruptions. Omega, 32(4), 301–312. https://doi.org/10.1016/j.omega.2003.12.002
RezaHoseini, A., Noori, S., & Ghannadpour, S. F. (2021). Integrated scheduling of suppliers and multi-project activities for green construction supply chains under uncertainty. Automation in Construction, 122, Article 103485.
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Sawik, T. (2022). Stochastic optimization of supply chain resilience under ripple effect: A COVID-19 pandemic related study. Omega, 109, Article 102596. https://doi.org/10.1016/j.omega.2022.102596
Schmitt, A. J., & Singh, M. (2012). A quantitative analysis of disruption risk in a multi-echelon supply chain. International Journal of Production Economics, 139(1), 22–32. https://doi.org/10.1016/j.ijpe.2012.01.004
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Shen, W., & Ying, W. (2022). Large-scale construction programme resilience against creeping disruptions: Towards inter-project coordination. International Journal of Project Management, 40(6), 671–684. https://doi.org/10.1016/j.ijproman.2022.06.004
Shishodia, A., Verma, P., & Jain, K. (2022). Supplier resilience assessment in project-driven supply chains. Production Planning & Control, 33(9–10), 875–893. https://doi.org/10.1080/09537287.2020.1837935
Snyder, L. V., Atan, Z., Peng, P., Rong, Y., Schmitt, A. J., & Sinsoysal, B. (2016). OR/MS models for supply chain disruptions: A review. IIE Transactions, 48(2), 89–109. https://doi.org/10.1080/0740817X.2015.1067735
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Tang, C. S. (2006). Perspectives in supply chain risk management. International Journal of Production Economics, 103(2), 451–488. https://doi.org/10.1016/j.ijpe.2005.12.006
Torabi, S., Baghersad, M., & Mansouri, S. (2015). Resilient supplier selection and order allocation under operational and disruption risks. Transportation Research Part E: Logistics and Transportation Review, 79, 22–48. https://doi.org/10.1016/j.tre.2015.03.005
Aldrighetti, R., Battini, D., & Ivanov, D. (2023). Efficient resilience portfolio design in the supply chain with consideration of preparedness and recovery investments. Omega, 117, Article 102841. https://doi.org/10.1016/j.omega.2023.102841
Behera, P., Mohanty, R., & Prakash, A. (2015). Understanding construction supply chain management. Production Planning & Control, 26(16), 1332–1350. https://doi.org/10.1080/09537287.2015.1045953
Burnson, P. (2012). Nation’s supply chains disrupted by hurricane sandy. Supply Chain Management Review. https://www.scmr.com/article/nations_supply_chains_disrupted_by_hurricane_sandy/CSX
Cardoso, S. R., Barbosa-Póvoa, A. P., Relvas, S., & Novais, A. Q. (2015). Resilience metrics in the assessment of complex supply-chains performance operating under demand uncertainty. Omega, 56, 53–73. https://doi.org/10.1016/j.omega.2015.03.008
Chen, Z., Hammad, A. W., & Alyami, M. (2024). Building construction supply chain resilience under supply and demand uncertainties. Automation in Construction, 158, Article 105190. https://doi.org/10.1016/j.autcon.2023.105190
Cheng, J. C., Law, K. H., Bjornsson, H., Jones, A., & Sriram, R. D. (2010). Modeling and monitoring of construction supply chains. Advanced Engineering Informatics, 24(4), 435–455. https://doi.org/10.1016/j.aei.2010.06.009
Craighead, C. W., Blackhurst, J., Rungtusanatham, M. J., & Handfield, R. B. (2007). The severity of supply chain disruptions: design characteristics and mitigation capabilities. Decision Sciences, 38(1), 131–156. https://doi.org/10.1111/j.1540-5915.2007.00151.x
Ergun, O., Hopp, W. J., & Keskinocak, P. (2023). A structured overview of insights and opportunities for enhancing supply chain resilience. IISE Transactions, 55(1), 57–74. https://doi.org/10.1080/24725854.2022.2080892
Fearne, A., & Fowler, N. (2006). Efficiency versus effectiveness in construction supply chains: the dangers of “lean” thinking in isolation. Supply Chain Management, 11(4), 283–287. https://doi.org/10.1108/13598540610671725
Garcia-Herreros, P., Wassick, J. M., & Grossmann, I. E. (2014). Design of resilient supply chains with risk of facility disruptions. Industrial & Engineering Chemistry Research, 53(44), 17240–17251. https://doi.org/10.1021/ie5004174
Greising, D., & Johnsson, J. (2007). Behind Boeing’s 787 delays. Chicago Tribune.
He, Z., Wang, G., Chen, H., Zou, Z., Yan, H., & Liu, L. (2022). Measuring the construction project resilience from the perspective of employee behaviors. Buildings, 12(1), Article 56. https://doi.org/10.3390/buildings12010056
Hendricks, K. B., & Singhal, V. R. (2005). An empirical analysis of the effect of supply chain disruptions on long-run stock price performance and equity risk of the firm. Production and Operations Management, 14(1), 35–52. https://doi.org/10.1111/j.1937-5956.2005.tb00008.x
Holling, C. S. (1973). Resilience and stability of ecological systems. Annual Review of Ecology and Systematics, 4, 1–23. https://doi.org/10.1146/annurev.es.04.110173.000245
Hu, C., & Du, W. (2010). Reliability-based optimization problem of supply chain construction. In ICLEM 2010: Logistics For Sustained Economic Development: Infrastructure, Information, Integration (pp. 4174–4179). https://doi.org/10.1061/41139(387)584
Jabbarzadeh, A., Fahimnia, B., Sheu, J.-B., & Moghadam, H. S. (2016). Designing a supply chain resilient to major disruptions and supply/demand interruptions. Transportation Research Part B: Methodological, 94, 121–149. https://doi.org/10.1016/j.trb.2016.09.004
Kamalahmadi, M., & Parast, M. M. (2017). An assessment of supply chain disruption mitigation strategies. International Journal of Production Economics, 184, 210–230. https://doi.org/10.1016/j.ijpe.2016.12.011
Kamalahmadi, M., Shekarian, M., & Parast, M. M. (2022). The impact of flexibility and redundancy on improving supply chain resilience to disruptions. International Journal of Production Research, 60(6), 1992–2020. https://doi.org/10.1080/00207543.2021.1883759
Kaur, H., & Singh, S. P. (2022). Disaster resilient proactive and reactive procurement models for humanitarian supply chain. Production Planning & Control, 33(6–7), 576–589. https://doi.org/10.1080/09537287.2020.1834124
Kerzner, H. (2002). Strategic planning for project management using a project management maturity model. John Wiley & Sons.
Korpysa, J., Halicki, M., & Lopatka, A. (2020). Entrepreneurial management of project supply chain–a model approach. Problems and Perspectives in Management, 18(3), 211–223. https://doi.org/10.21511/ppm.18(3).2020.18
Kumar, B., & Sharma, A. (2021). Managing the supply chain during disruptions: Developing a framework for decision-making. Industrial Marketing Management, 97, 159–172. https://doi.org/10.1016/j.indmarman.2021.07.007
Massey, R. (2011). Tsunami forces Sunderland Nissan plant to shut down for three days because of shortage of parts from Japan. Daily Mail.
Mehrjerdi, Y. Z., & Shafiee, M. (2021). A resilient and sustainable closed-loop supply chain using multiple sourcing and information sharing strategies. Journal of Cleaner Production, 289, Article 125141. https://doi.org/10.1016/j.jclepro.2020.125141
Palliyaguru, R., Amaratunga, D., & Haigh, R. (2012). Impact of integrating disaster risk reduction philosophies into infrastructure reconstruction projects in Sri Lanka. Journal of Civil Engineering and Management, 18(5), 685–700. https://doi.org/10.3846/13923730.2012.723322
Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The International Journal of Logistics Management, 20(1), 124–143. https://doi.org/10.1108/09574090910954873
Qi, X., Bard, J. F., & Yu, G. (2004). Supply chain coordination with demand disruptions. Omega, 32(4), 301–312. https://doi.org/10.1016/j.omega.2003.12.002
RezaHoseini, A., Noori, S., & Ghannadpour, S. F. (2021). Integrated scheduling of suppliers and multi-project activities for green construction supply chains under uncertainty. Automation in Construction, 122, Article 103485.
Ribeiro, J. P., & Barbosa-Póvoa, A. P. F. (2023). A responsiveness metric for the design and planning of resilient supply chains. Annals of Operations Research, 324, 1129–1181. https://doi.org/10.1007/s10479-022-04521-w
Sawik, T. (2022). Stochastic optimization of supply chain resilience under ripple effect: A COVID-19 pandemic related study. Omega, 109, Article 102596. https://doi.org/10.1016/j.omega.2022.102596
Schmitt, A. J., & Singh, M. (2012). A quantitative analysis of disruption risk in a multi-echelon supply chain. International Journal of Production Economics, 139(1), 22–32. https://doi.org/10.1016/j.ijpe.2012.01.004
Senouci, A. B., & Mubarak, S. A. (2016). Multiobjective optimization model for scheduling of construction projects under extreme weather. Journal of Civil Engineering and Management, 22(3), 373–381. https://doi.org/10.3846/13923730.2014.897968
Shen, W., & Ying, W. (2022). Large-scale construction programme resilience against creeping disruptions: Towards inter-project coordination. International Journal of Project Management, 40(6), 671–684. https://doi.org/10.1016/j.ijproman.2022.06.004
Shishodia, A., Verma, P., & Jain, K. (2022). Supplier resilience assessment in project-driven supply chains. Production Planning & Control, 33(9–10), 875–893. https://doi.org/10.1080/09537287.2020.1837935
Snyder, L. V., Atan, Z., Peng, P., Rong, Y., Schmitt, A. J., & Sinsoysal, B. (2016). OR/MS models for supply chain disruptions: A review. IIE Transactions, 48(2), 89–109. https://doi.org/10.1080/0740817X.2015.1067735
Stamatiou, D. R. I., Kirytopoulos, K. A., Ponis, S. T., Gayialis, S., & Tatsiopoulos, I. (2019). A process reference model for claims management in construction supply chains: The contractors’ perspective. International Journal of Construction Management, 19(5), 382–400. https://doi.org/10.1080/15623599.2018.1452100
Stecke, K. E., & Kumar, S. (2009). Sources of supply chain disruptions, factors that breed vulnerability, and mitigating strategies. Journal of Marketing Channels, 16(3), 193–226. https://doi.org/10.1080/10466690902932551
Tafakkori, K., Jolai, F., & Tavakkoli-Moghadda, R. (2023). Disruption-resilient supply chain entities with decentralized robust-stochastic capacity planning. Reliability Engineering & System Safety, 238, Article 109447. https://doi.org/10.1016/j.ress.2023.109447
Tang, C. S. (2006). Perspectives in supply chain risk management. International Journal of Production Economics, 103(2), 451–488. https://doi.org/10.1016/j.ijpe.2005.12.006
Torabi, S., Baghersad, M., & Mansouri, S. (2015). Resilient supplier selection and order allocation under operational and disruption risks. Transportation Research Part E: Logistics and Transportation Review, 79, 22–48. https://doi.org/10.1016/j.tre.2015.03.005