Supply chain disruption resilience is receiving significant attention due to its role in increasingly complex and competitive economies. However, studies focusing on the factors that affect firms' resilience performance remain sparse. This study aims to gain new insights into the impact of suppliers' replenishment lead-time, an intrinsic characteristic of supply chain networks, on supply chain resilience following unexpected disruptive events, such as shipment failure. By modeling supply chain system dynamics with a multi-echelon design, this study provides an in-depth understanding of the system-wide impact based on four measurements, namely crisis readiness, response effectiveness, recovery speed, and impact propagation rate under different supply chains characterized by various lead-time durations. This study also examines the lead-time effect on resilience performances across different stratifications in a supply chain comprising a factory, a distributor, and a retailer. The results show that the major disruption impacts, such as impact propagation, deteriorate along with lead-time. Then, the effectiveness of two practices that can be used to mitigate the impacts is analyzed. The results show that constraining the order rate from the demand side perspective is effective only when lead-time is long while it is detrimental to firms’ resilience when lead time is short. Additionally, a backup supply, from a supply side perspective, reduces disruption impacts.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Strategy and Management