Structural complexity and robustness of supply chain networks based on product architecture

Abstract

Supply chain networks are dynamic and complex, but also vulnerable. The supply chain network configuration is a context for action and its design should depend on the manufactured product. Hence, this study develops a framework to assess topological complexity and robustness of the supply chain networks taking into consideration the product architecture. The framework includes a morphological analysis and evaluates quantitative indicators of complexity and robustness based on network characteristics. Additionally, overall metrics for complexity and robustness are presented. As a result, a decision matrix is drawn to allow the comparison between different product architectures and their corresponding supply chain network. Moreover, a cost analysis is performed to analyse the trade-offs between complexity vs. cost and robustness vs. cost. The results suggest that complexity is required to achieve robustness and an increase in cost is needed to attain a balanced level of complexity and robustness. The presented framework can be used during supply chain and product design phases to compare different product architectures and supply chain structures and to consider the implications of robustness, complexity and cost of the proposed designs.

Keywords:

• supply chain design
• structural complexity
• structural robustness
• product architecture
• risk analysis
• decision analysis