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Using vulnerability performance indicators to attain food supply chain robustness
Authors:Jelena V. Vlajic  Sander W.M. van Lokven  René Haijema  Jack G.A.J. van der Vorst
Affiliation:1. Operations Research and Logistics Group, Wageningen University , Hollandseweg 1 , 6706 KN Wageningen , The Netherlands jelena.vlajic@wur.nl;3. Districon B.V. , Raadhuisstraat 32-34, 3603 AW, Maarssen , The Netherlands;4. Operations Research and Logistics Group, Wageningen University , Hollandseweg 1 , 6706 KN Wageningen , The Netherlands
Abstract:
High effectiveness and leanness of modern supply chains (SCs) increase their vulnerability, i.e. susceptibility to disturbances reflected in non-robust SC performances. Both the SC management literature and SC professionals indicate the need for the development of SC vulnerability assessment tools. In this article, a new method for vulnerability assessment, the VULA method, is presented. The VULA method helps to identify how much a company would underperform on a specific Key Performance Indicator in the case of a disturbance, how often this would happen and how long it would last. It ultimately informs the decision about whether process redesign is appropriate and what kind of redesign strategies should be used in order to increase the SC's robustness. The applicability of the VULA method is demonstrated in the context of a meat SC using discrete-event simulation to conduct the performance analysis.
Keywords:performance management  supply chain management  vulnerability profiling  vulnerability index  simulation  meat supply chain
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