Supply Chain Risk Management System for Disruption Mitigation
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Solution Overview
Problem
Current supply chain risk management systems are inadequate in addressing both short-term and long-term disruptions, lacking a comprehensive framework to identify and mitigate various types of risks, particularly due to their deterministic planning focus and limited disruption management capabilities.
Innovation Solution
A system and method for risk management in supply chains that includes a processor-configured system to monitor and respond to disruptions by updating inventory buffer levels and revising plans, utilizing a historical database to identify and calibrate solutions for long-term disruptions based on predefined rules.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If deterministic planning is used in supply chain management, then operational efficiency is improved, but disruption management capability deteriorates
Solution Approach 1:
The system transitions from static deterministic planning to dynamic stochastic planning that continuously adapts to changing conditions. The master plan is generated considering multiple future scenarios and is dynamically updated when disruptions are detected, allowing the system to maintain operational efficiency while gaining disruption management capability
Solution Approach 2:
The system performs preliminary actions by pre-calculating multiple future plans and buffer levels before disruptions occur. When a disruption is detected, the system can immediately implement pre-prepared contingency plans, reducing response time and improving disruption management without sacrificing operational efficiency
2Reliability
If comprehensive risk management framework is implemented, then disruption management capability is improved, but system complexity increases
Solution Approach 1:
The system segments risk management into distinct modules: disruption detection module, short-term disruption handling module, long-term disruption handling module, and historical database module. Each module performs a specific function, making the overall complex system manageable and maintainable while providing comprehensive disruption management capability
Solution Approach 2:
The system introduces a master plan as an intermediary layer between operational planning and disruption management. The master plan contains pre-calculated buffer levels and multiple future plans that mediate between normal operations and disruption response, simplifying the complexity of comprehensive risk management
3Ease of operation
If single platform is used for planning, then ease of operation is maintained, but ability to address short term and long term disruptions deteriorates
Solution Approach 1:
The master plan serves multiple functions: it acts as both the operational plan for normal conditions and the contingency plan for disruptions. The same platform generates and manages both short-term and long-term disruption responses through different modules, maintaining ease of operation while providing versatile disruption management capability
Data Source
AI summary
The present disclosure relates to systems and methods for risk management in a supply chain. The system is configured to maintain a supply chain repository storing an original buffer level, and a master plan. Further, the system is configured to monitor each stage associated with the supply chain to identify at least one of a short term disruption or a long term disruption associated with a stage of the supply chain. Further, the system is configured to resolve the short term disruption by updating the original buffer level of an inventory or by revising the current plan and at least one of the set of future plans associated with the supply chain. Further, the system is configured to resolve the long term disruption in the supply chain using a set of problems and a set of solutions stored in a historical database.