Impact of capacity volatility and input substitutability on supply chain resilience (opens in new tab)

Supply chains are intrinsically vulnerable to stochastic shocks due to their sequential production dependencies. Building on the Feld-Barthelemy framework, we investigate how capacity volatility and input substitutability determine critical demands in stochastic supply chains. By modeling production capacity with a truncated normal distribution, we show that in long supply chains, reducing capacity volatility is often more effective than increas...