THE PROJECT SUPPLY CHAIN – A MODEL OF THE RECENT DISRUPTION BROUGHT ON BY THE COVID-19 PANDEMIC AND THE WAR IN UKRAINE
THE PROJECT SUPPLY CHAIN – A MODEL OF THE RECENT DISRUPTION BROUGHT ON BY THE COVID-19 PANDEMIC AND THE WAR IN UKRAINE

Summary/Abstract: This paper examines the decisions companies must face while creating project supply chains, specifically concerning the number of suppliers from which to contract. This question is of importance as project supply chains are rarely described in the logistic literature. A theoretical model is developed to expound on this issue. This model is then used a basis for simulations which seek to understand under what conditions a firm may wish to insure itself against disruption by contracting with multiple suppliers. This model helps to study the impact of various disruptions, including COVID 19-pandemic or the war in Ukraine, on project supply chains. The paper finds that cost of establishing supplier relationships, the nature of the returns to scale, and the probability of a disruption are all key variables when determining how robust a firm should make their supply chain.

• Details
• Contents