Architecting Fail-Safe Supply Networks

by Shabnam Rezapour (Author), Amirhossein Khosrojerdi (Author), Golnoosh Rasoulifar (Author), Janet K. Allen (Author), Jitesh H. Panchal (Author), Ramakrishnan S. Srinivasan (Author), Jeffrey D. Tew (Author), Farrokh Mistree (Author)

A fail-safe supply network is designed to mitigate the impact of variations and disruptions on people and corporations. This is achieved by (1) developing a network structure to mitigate the impact of disruptions that distort the network structure and (2) planning flow through the network to neutralize the effects of variations.



In this monograph, we propose a framework, develop mathematical models and provide examples of fail-safe supply network design. We show that, contrary to current thinking as embodied in the supply network literature, disruption management decisions made at the strategic network design level are not independent from variation management decisions made at the operational level. Accordingly, we suggest that it is beneficial to manage disruptions and variations concurrently in supply networks. This is achieved by architecting fail-safe supply networks, which are characterized by the following elements: reliability, robustness, flexibility, structural controllability, and resilience.


Organizations can use the framework presented in this monograph to manage variations and disruptions. Managers can select the best operational management strategies for their supply networks considering variations in supply and demand, and identify the best network restoration strategies including facility fortification, backup inventory, flexible production capacity, flexible inventory, and transportation route reconfiguration. The framework is generalizable to other complex engineered networks

About the Author
Shabnam Rezapour, Ph.D. is an assistant professor in the Enterprise and Logistics Engineering program at the Florida International University in Miami, Florida. She has co-authored two books, five book chapters and more than twenty technical papers dealing with designing and managing decentralized network-centric systems such as commercial, humanitarian and healthcare supply networks, logistics and transportation systems and network infrastructure. Her research focus is on managing risks and disruptions in network-centric systems embodied in uncertain environments characterized by natural and manmade disasters. Shabnam is a Fellow of INFORMS and POMS. Shabnam’s passion is to help others to learn how to think systematically and quantify engineering systems.

Amirhossein Khosrojerdi, Ph.D. is a risk and portfolio analytics manager in Credit and Decision Management at Discover Financial Services. He has ten years of experience in operations research, mathematical modeling, and disruption management in supply networks and network-based systems. His publication record includes over twenty conference papers, journal articles, and books. His current focus is on advancing analytics and data-driven decision making in finance and technology. Amirhossein’s passion is investing in new ideas through entrepreneurship and intrapreneurship.

Golnoosh Rasoulifar, Ph.D. is an independent consultant in the area of analytics and system design. Her research in Industrial Engineering is focused on the incorporation of methods and tools to enable specialists from multiple areas to work together, including engineering, design, consumer behavior, environment, marketing and branding. Her research in Engineering Education domain is focused on application of effective teaching practices and measures of success. Golnoosh has authored several conference and journal papers in both domains. Golnoosh's passion is to promote creative thinking and effective knowledge sharing in multidisciplinary projects.

Janet K. Allen, Ph.D. holds the John and Mary Moore Chair in the School of Industrial and Systems Engineering at the University of Oklahoma. She has co-authored a textbook, two monographs and more than 300 technical papers dealing with the management of uncertainty in the integrated realization of materials, products and associated manufacturing processes, the design of mechanical, thermal and structural systems; and ships and aircraft. Janet is a Fellow of ASME and a Senior Member of AIAA. Janet’s passion is to create, archive, and transmit knowledge about the realization of complex engineering systems.

Jitesh H. Panchal, Ph.D. is an Associate Professor in the School of Mechanical Engineering at Purdue University. His research interests are in the science of systems engineering with focus on three areas: democratization of design and manufacturing, decision making in decentralized socio-technical systems, and integrated products and materials design. He is a recipient of a CAREER award from the US National Science Foundation, Young Engineer Award, three best paper awards from ASME, and a university silver medal from IIT Guwahati. Jitesh is passionate about solving problems at the interface of multiple disciplines.

Ramakrishnan S. (RS) Srinivasan, Ph.D. is a Principal Scientist in the Digital Manufacturing and Operations Innovation Program at Tata Consultancy Services. He has over 25 years of industrial experience with a rich background in supply chain application software, mechanical design, manufacturing and industrial engineering. RS’s publication record includes twenty-two conference papers, journal articles, and book chapters. He has filed two patent applications. His passion lies in applied research in the supply chain domain, with an emphasis on risk management methods and scenario planning.

Jeffrey D. Tew, Ph.D. is the Chief Scientist and founding Director for the Digital Manufacturing and Operations Innovation Program for Tata Consultancy Services. He is an internationally known innovation leader and subject matter expert in Digital Manufacturing, Transportation and Supply Chain Management, Global Logistics, Green Supply Chain Design and Execution, and Service Parts Management with over 25 years’ experience in industrial research. He has maintained a strong publication record throughout his career, including filing 12 U.S. Patents awarded to date, over 80 internal GM R&D publications, and over 35 archival publications in leading professional journals. Jeff is passionate about developing top-notch industrial research teams and developing innovative solutions to crucial business problems.

Farrokh Mistree, Ph.D. holds the L. A. Comp Chair in the School of Aerospace and Mechanical Engineering at the University of Oklahoma in Norman, Oklahoma. He has co-authored two textbooks, two monographs and more than 400 technical papers dealing with the integrated realization of materials, products and associated manufacturing processes, the design of mechanical, thermal and structural systems; ships and aircraft. Farrokh is a Fellow of ASME, an Associate Fellow of AIAA, a Life Member of The Honor Society of Phi Kappa Phi. Farrokh’s passion is to help motivated people define and achieve their dreams.



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