| Literature DB >> 35284675 |
Ghazi M Magableh1, Mahmoud Z Mistarihi1.
Abstract
COVID-19 has impacted various aspects of life and business. The economic panic and effects caused by the pandemic have led to disruptions in most supply chains (SCs) worldwide. Our research aims to analyse the impact of COVID-19 on SCs and enable organisations to prioritise solutions based on their relative importance. The research consists of two main phases. Phase I analyses the impact of the pandemic on SCs in terms of challenges, concerns, steps, and solutions with the goal of SC resilience. The second phase proposes a merged Analytic Network Process-Technique for Order Preference by Similarity to Ideal Solution framework (ANP-TOPSIS) to prioritise the solutions that considers the complicated interrelationships between the factors involved in decision-making. The proposed model increases the efficiency of the decision-making process and helps decision makers effectively select solutions based on their importance and impact on business. The results indicate that SCs should continuously utilise technology to withstand future competition and crises.Entities:
Keywords: ANP-TOPSIS; COVID-19 pandemic; MCDM; MENA; SC solutions; Supply chain
Year: 2022 PMID: 35284675 PMCID: PMC8914125 DOI: 10.1016/j.heliyon.2022.e09062
Source DB: PubMed Journal: Heliyon ISSN: 2405-8440
Figure 1Research methodology.
Description of selection criteria.
| Criteria (source[s]) | Abr. | Definition |
|---|---|---|
| Demand volatility | DV | Unpredictable changes in demand |
| Supply disruptions | SD | Sudden crises that negatively impact the supply of items or services |
| Process interruptions | PI | Disruptions in the processes and steps involved in SC activities to get a product or service to the customer |
| Government measures | GM | The actions taken by the government to confront the pandemic |
| Personal safety concerns | PS | General personal recognition and avoidance of possible harmful situations due to COVID-19 |
| Safety | S | Worker safety or occupational health and safety due to the pandemic |
| Continuity | C | The continuity and stability of SC flows, such as material, financial, and informational flows |
| Quality ( | Q | Quality of goods |
| Cost control ( | CC | Practices to maintain or lower costs during the pandemic |
| Time ( | T | SC delays in time due to the pandemic |
| Stability | ST | Reliable, predictable, and agile SC that is capable of delivering against customer requests |
| Cash flow | CF | Liquidity or the net amount of available cash in the organisation |
| Risk mitigation ( | RM | Strategy/plan to prepare for and minimise the effects of threats during crises and disasters |
| Opportunity ( | O | Opportunities to increase attainment during a crisis |
| Customer satisfaction | CS | Customers' satisfaction with the organisation's products and services |
| Assessment and planning | AP | Phases that support the development of the SC |
| ( | ||
| Capability building ( | CB | The ability of SC personnel to perform work efficiently and improve performance |
| Focus on supply network | SN | Focus on the processes for adding value for customers via the manufacturing and delivery of goods |
| Digital collaboration | DC | A tool that utilises digital technologies for cooperation with partners to facilitate collaboration both in-office and remotely |
| Build SC resilience ( | BR | SC's preparedness for unexpected risks events and to respond and recover quickly from the effects of a crisis |
Phenomenon-cause-impact interrelationships.
| Phenomenon | Possible Cause | Impact/effect |
|---|---|---|
| Production disruptions | Social isolation and distancing, government protection measures, discontinuation of supply, border closures, and transportation problems | Business disruptions; contraction of international trade flows; delivery challenges; unavailability of materials, components, finished products, and items used in factories; and increased costs |
| Panic buying | Demand spikes, market instability, social isolation and distancing, government protection measures, customers' stockpiling, and fear of personal safety | Stock out, price increases, and inconsistent demand quantity |
| Prices hikes | Production disruptions, banning exports, demand spikes, freight price spikes, abandonment of travel, extra orders, pressures on organisation to cut workers and production, volume decline, transit delay, lack capacity, and delivery delay | Price fluctuations; negative effects on the relations between suppliers, retailers, and customers; increase in demand for key products; decrease on demand for luxury products; and cancelled orders |
| Fraud | Demand spikes, low production, price increases, cyberattacks, increased opportunities for fraudsters to fill gaps | Low-quality goods and dissatisfied customers |
| Freight disruptions | Suspended transportation, ambiguity of routes, increased rates, uncertainty of import guidelines, delays in shipments, moving cargo, loading, shipping, unloading, and extra delay at the borders and ports | Fluctuations in transport costs, long lead time, delays in distribution, and delay in communication with sources and shippers |
| Supply, distribution, and delivery difficulties | Lack of raw materials, items, and components; production disruptions; shortage of inventory and storage; increased online orders; and government protection measures | Reduction in customer satisfaction, low inventory, price increases, inability to fulfil commitments, low responsiveness, limited ability to deliver, re-staffing of DCs and WHs, and changes in allocations of inventory across the network and distribution channels to increase responsiveness |
| Online shopping | Delivery constraints, direct distribution difficulties, social isolation and distancing, and personal safety concerns | Increased business for many online shops, decreased direct purchases, and increased pressure on online delivery |
| Stockpiling | Retaining goods and selling them later at inflated prices, panic buying, personal safety issues, and government protection measures | Stock out at stores (empty shelves), low inventory and storage, and price increases |
| Social isolation and distancing | Government protection measures, personal safety, and measures to limit the spread of COVID-19 | Lockdown, suspended operations, factory closures, border restrictions, travel bans, port closures, suspended transportation, labour shortage, migration due to lockdowns and safety concerns, banning exports and sometimes imports, and abandonment of travel |
| Localisation trends | Trade barriers, supply challenges, border restrictions, and government protection measures | Increased focus on regional and local SCs |
| Reduction in quality measures | Low production; talent constraint; lack of inward quality control; reduction in production capacity, manufacturing capability, and the direct impact on sources of production; and demand spikes | Increases in fraudulent activities, decreases in customer satisfaction, and weak trust from consumers |
| Cash flow and liquidity constraints | New payment terms; flows disruptions; supply, production, and delivery constraints; social isolation and distancing; late payments; cancelled credit lines; inconsistent demand quantity; and increased costs | Panic to cut costs and generate cash, increased loans, cancelled orders, and rescheduling of payments and contracts |
| Unpredicted practices | Inefficient response to technology trends, panic to secure national supply, new legal issues and instructions, and nervousness regarding government decisions, rules, and regulations | Decreases in performance and disruptions of operations and activities |
| Reduction in return | Decrease in production; supply and delivery problems; disruption of SC activities, operations, processes, and their management; and government protection measures | Decreases in cash and liquidity, increases in employees layoffs, and decreases in business |
| Lack of crisis plans | Reduction in data access, difficulties in getting information and data from partners, lack of disruptions plans, small inventory levels, single supplier or minor diversification, underestimating the possibility of severe disruptions, focus on the short term and costs minimisations, lack of end-to-end visibility, lack of integration and coordination with SC partners, variations in technology utilisation, lack of SC risk management, lack of disruption mitigation plans, and lack of business strategies during crisis | Disruptions in planning, decision-making, capability, and visibility; lack of risk information and a contingency plan, increased awareness of reliance on multiple suppliers and sources, increased stock size to buffer against SC instability, and greater concerns about region or country, including local/domestic suppliers, factories, and industry |
Figure 2Rank order of the main concerns and their interests.
Figure 3Main steps towards the new normal and SC resilience.
SC solutions and the main elements contributing to solutions.
| Solutions | Factors contributing to the solution |
|---|---|
| Technological solutions | 3D printers, IoT, predictive technology, cloud computing, big data and analytics, autonomous systems, industry 4.0 technologies, augmented realty, blockchain technology |
| Diversifications | New reliable suppliers, supply from closer sources, direct suppliers, optimising and managing supply networks |
| Digitisation | Emerging technologies, integration, transparency |
| Automation | Technologies, smart sensors, robots, unmanned vehicle systems, IT systems, communication advances |
| Visibility | Technology, blockchain, value chain, information sharing, automation, industry 4.0, digitisation, cumulative data from third parties, IT capabilities, digital collaboration |
| Integration | Partners' commitment, sharing transparent information, distribution of benefit, collaboration and cooperation, employing technology |
| Network agility | Advanced sensing, accessibility, flexibility, coordination, velocity, IT systems, new technology |
| Empowered teams | Empowered to be creative, professionally competent, using best practices, autonomous, possessing appropriate knowledge and skills, concerned about health and wellness, concerned about finances (social security), possessing leadership skills, engaged in self-discovery, entrepreneurial, possessing clarity regrading goals |
| Government intervention | Government support, regularity, reduction of trade restrictions (export, import, tariff taxes), cash-based assistance, strengthened healthcare at borders and ports to guarantee continuity, contributing to sustaining innovation efforts and existing productive capacity, financial system support, ensuring market conditions, security, transparency, connection between local factories and suppliers, reducing restrictions, investing in key SCs |
Figure 4Rank order of solution elements that contribute to the SC goals of resilience and stability.
Figure 5Network model.
Figure 6Model elements and their interdependent relationships.
Figure 7Network structure for the selection of best SC solutions.
Criteria–goal matrix.
| Goal | CH | CO | KS |
|---|---|---|---|
| CH | 1 | 0.34 | 5 |
| CO | 3 | 1 | 7 |
| KS | 0.2 | 0.14 | 1 |
Standardised criteria–goal matrix.
| Goal | CH | CO | KS | Weight |
|---|---|---|---|---|
| CH | 0.24 | 0.23 | 0.38 | 0.28 |
| CO | 0.71 | 0.68 | 0.54 | 0.64 |
| KS | 0.05 | 0.09 | 0.08 | 0.07 |
Internal interdependency (Main Criteria-CH) matrix.
| CO | KS | Weight | |
|---|---|---|---|
| CO | 1 | 0.27 | 0.21 |
| KS | 3.75 | 1 | 0.79 |
Internal interdependency (Main Criteria-CO) matrix.
| CH | KS | Weight | |
|---|---|---|---|
| CH | 1 | 0.35 | 0.26 |
| KS | 2.83 | 1 | 0.74 |
Internal interdependency (Main Criteria-KS) matrix.
| CH | CO | Weight | |
|---|---|---|---|
| CH | 1 | 4.62 | 0.82 |
| CO | 0.22 | 1 | 0.18 |
Relative impact of decision criteria.
| CH | CO | KS | |
|---|---|---|---|
| CH | 1 | 0.26 | 0.82 |
| CO | 0.21 | 1 | 0.18 |
| KS | 0.79 | 0.74 | 1 |
Normalised relative impact of decision criteria.
| CH | CO | KS | |
|---|---|---|---|
| CH | 0.5 | 0.13 | 0.41 |
| CO | 0.105 | 0.5 | 0.09 |
| KS | 0.395 | 0.37 | 0.5 |
Comparison matrix and local weights for CH.
| DV | SD | PI | GM | PS | Weight | |
|---|---|---|---|---|---|---|
| DV | 1 | 1 | 1 | 5 | 7 | 0.28 |
| SD | 1 | 1 | 3 | 7 | 5 | 0.36 |
| PI | 1 | 0.33 | 1 | 6 | 7 | 0.24 |
| GM | 0.2 | 0.14 | 0.17 | 1 | 4 | 0.07 |
| PS | 0.14 | 0.2 | 0.14 | 0.25 | 1 | 0.04 |
Comparison matrix and local weights for CO.
| S | C | Q | CC | T | S | CF | RM | O | CS | Weights | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| S | 1 | 0.67 | 2 | 0.5 | 0.67 | 0.5 | 1 | 0.33 | 2 | 0.2 | 0.06 |
| C | 1.5 | 1 | 1 | 2 | 0.67 | 1 | 2 | 1 | 2 | 1 | 0.1 |
| Q | 0.5 | 1 | 1 | 1 | 0.33 | 0.5 | 1 | 0.33 | 1 | 0.5 | 0.06 |
| CC | 2 | 0.5 | 1 | 1 | 0.2 | 0.67 | 0.5 | 0.2 | 1 | 2 | 0.07 |
| T | 1.5 | 1.5 | 3 | 5 | 1 | 1 | 4 | 0.2 | 3 | 1 | 0.13 |
| ST | 2 | 1 | 2 | 1.5 | 1 | 1 | 5 | 0.17 | 2 | 1 | 0.1 |
| CF | 1 | 0.5 | 1 | 2 | 0.25 | 0.2 | 1 | 0.2 | 1 | 0.2 | 0.05 |
| RM | 2.99 | 1 | 2.99 | 5 | 5 | 6 | 5 | 1 | 5 | 3 | 0.26 |
| O | 0.5 | 0.5 | 1 | 1 | 0.33 | 0.5 | 1 | 0.2 | 1 | 0.2 | 0.04 |
| CS | 5 | 1 | 2 | 0.5 | 1 | 1 | 5 | 0.33 | 5 | 1 | 0.13 |
Comparison matrix and local weights for KS.
| AP | CB | SN | DC | RI | Weights | |
|---|---|---|---|---|---|---|
| AP | 1 | 2 | 5 | 6 | 7 | 0.44 |
| CB | 0.5 | 1 | 4 | 5 | 7 | 0.31 |
| SN | 0.2 | 0.25 | 1 | 0.2 | 1 | 0.06 |
| DC | 0.17 | 0.2 | 5 | 1 | 3 | 0.14 |
| RI | 0.14 | 0.14 | 1 | 0.33 | 1 | 0.05 |
Sub criteria global weights.
| Criteria | Sub criteria | |||
|---|---|---|---|---|
| CH | 0.25 | DV | 0.28 | 0.07 |
| SD | 0.36 | 0.09 | ||
| PI | 0.24 | 0.06 | ||
| GM | 0.07 | 0.02 | ||
| PS | 0.04 | 0.01 | ||
| CO | 0.36 | S | 0.06 | 0.02 |
| C | 0.1 | 0.04 | ||
| Q | 0.06 | 0.02 | ||
| CC | 0.07 | 0.03 | ||
| T | 0.13 | 0.05 | ||
| ST | 0.1 | 0.04 | ||
| CF | 0.05 | 0.02 | ||
| RM | 0.26 | 0.09 | ||
| O | 0.04 | 0.01 | ||
| CS | 0.13 | 0.05 | ||
| KS | 0.38 | AP | 0.44 | 0.17 |
| CB | 0.31 | 0.12 | ||
| SN | 0.06 | 0.02 | ||
| DC | 0.14 | 0.05 | ||
| RI | 0.05 | 0.02 |
Evaluation matrix.
Normalised evaluation matrix.
Weighted evaluated matrix.
Measures of closeness coefficients.
| Si+ | Si- | Pi | Rank | |
|---|---|---|---|---|
| 0.137 | 0.2 | 0.593 | 1 | |
| 0.191 | 0.151 | 0.442 | 3 | |
| 0.161 | 0.157 | 0.494 | 2 | |
| 0.245 | 0.098 | 0.286 | 5 | |
| 0.173 | 0.134 | 0.436 | 4 |
Figure 8Ranking SC solutions.