Supply chains and disruptive events: an inventory management system perspective

Abstract

In recent years, adverse events resulting in an interruption of the normal functioning of supply chains are increasingly source of research for scholars from multiple points of view, from their prediction to the ways to recover quickly after their occurrence. The increasing interest in the topic is mainly linked to the phenomenon of globalization, which has brought cost advantages to companies but at the same time exposed them to greater risks and weaknesses. There are many factors that affect a company's resilience and robustness to these events, including the chosen inventory management system. For this reason, three different main approaches have been considered: MRP, DDMRP and Lean production. They are compared with each other, highlighting their strengths and weaknesses with a focus on whether or not they are able to face disruptive events effectively. This may spur companies to look not only at cost convenience but also at those characteristics of the inventory management system they choose. Thanks to the analysis of two emblematic real case studies (how the car manufacturer Nissan reacted to changes introduced by Brexit and how the lack of semiconductor components has caused widespread problems for companies operating in different industries) it was possible to point up concepts previously analysed referring to Lean approach. Finally, thanks to the use of analytical techniques, it was possible to propose the realization and subsequent analysis of possible alternative scenarios to those previously proposed, investigating what would be the possible different outcomes of those situations.