An Agent-based Simulation Framework for Supply Chain Disruptions and Facility Fortification

Fortifying facilities within a supply chain network can mitigate facility failures caused by disruptions. In this study we build an agent-based simulation model to study the r-interdiction median problem with fortification (RIMF), considering two types of facility disruptions: naturally-caused and human-caused disruptions. The objective of this study is to develop a simulation model that analyzes facility disruption and fortification as a repeated Stackelberg competition, where fortification decisions are made anticipating disruptions. The most important facilities - those with the largest demand coverage - are fortified, while the next most important facilities - those not fortified due to fortification resource limitations - are successfully disrupted. In addition, the study provides event-by-event updates of the fortifying, disrupting, and recovering processes, as well as how these events affect the total network cost over the course of the simulation; thus paves the way for a future study on how to make optimal fortification decisions.

Supply chain network simulation with AnyLogic

Supply chain network simulation with AnyLogic

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