Evaluation of supply chain resilience enhancement with multi-tier supplier selection policy using agent-based modeling

Resilience evaluation and enhancement has become a vital issue concerning the effectiveness of a current supply chain. This research paper proposes a multi-tier supplier selection policy for resilience enhancement as well as a customer-service-level oriented resilience measurement approach using on-time delivery rate as the indicator. A simple case study involving main supplier failure disturbance is designed and simulated with LeCas agent-based modelling tool to compare the efficacy of supply chains with various policy configuration. Results demonstrate that supply chain which adopts the proposed policy is more resilient than normal supply chain during an upstream disruption, with a reduction in recoverability index by a factor of 10. It also shows a significant decline in both maximum customer service level loss and recovery time.