TY - JOUR
T1 - Impacts of social distancing measures on global supply chain configuration
AU - Cai, Yiji
AU - Wang, Shuyi
AU - Ouyang, Zhiyuan
AU - Huang, George Q.
N1 - Funding Information:
This work was supported by the 2019 Guangdong Special Support Talent Program–Innovation and Entrepreneurship Leading Team (China) [grant number 2019BT02S593], and 2018 Guangzhou Leading Innovation Team Program [grant number 201909010006].
Publisher Copyright:
© 2022 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2023/4/18
Y1 - 2023/4/18
N2 - World Health Organisation has advised governments to prevent the spread of COVID-19 by introducing stringent social distancing measures (SDMs) in five levels, ranging from pandemic surveillance, stay-at-home recommendations, workplace closures, to national and international travel restrictions. These measures inevitably disrupt global business environment and supply chain configuration. Existing literature does not comprehensively analyze the five-level SDMs’ impacts on firms and supply chains. Thus, we established a mixed-integer programming model to integrate environment changes in lead time and cost for transportation and processing, market size, and the number of countries (NoC) imposing the SDMs. Sensitivity analysis is conducted to evaluate propagation impacts on global supply chains when the SDMs are imposed on firms in different echelons of supply chains. Results show that (i) supply chain losses and disruptions primarily depend on the NoC, followed by restricted transportation, market size, and processing limitations. (ii) When the SDMs, especially restrictions on transportation, are implemented in downstream echelons, the propagation impacts on supply chains and firms become more significant. (iii) Compared with elastic-demand supply chains, the fixed-demand one, e.g. food supply chain, suffers more significantly with the stringent SDMs and high holding costs. Finally, managerial implications are discussed from supply chains, firms, and policymakers.
AB - World Health Organisation has advised governments to prevent the spread of COVID-19 by introducing stringent social distancing measures (SDMs) in five levels, ranging from pandemic surveillance, stay-at-home recommendations, workplace closures, to national and international travel restrictions. These measures inevitably disrupt global business environment and supply chain configuration. Existing literature does not comprehensively analyze the five-level SDMs’ impacts on firms and supply chains. Thus, we established a mixed-integer programming model to integrate environment changes in lead time and cost for transportation and processing, market size, and the number of countries (NoC) imposing the SDMs. Sensitivity analysis is conducted to evaluate propagation impacts on global supply chains when the SDMs are imposed on firms in different echelons of supply chains. Results show that (i) supply chain losses and disruptions primarily depend on the NoC, followed by restricted transportation, market size, and processing limitations. (ii) When the SDMs, especially restrictions on transportation, are implemented in downstream echelons, the propagation impacts on supply chains and firms become more significant. (iii) Compared with elastic-demand supply chains, the fixed-demand one, e.g. food supply chain, suffers more significantly with the stringent SDMs and high holding costs. Finally, managerial implications are discussed from supply chains, firms, and policymakers.
KW - COVID-19 pandemic
KW - global supply chain
KW - long-term pandemic disruptions
KW - Social distancing measures
KW - supply chain configuration
UR - http://www.scopus.com/inward/record.url?scp=85127142483&partnerID=8YFLogxK
U2 - 10.1080/00207543.2022.2053604
DO - 10.1080/00207543.2022.2053604
M3 - Journal article
AN - SCOPUS:85127142483
SN - 0020-7543
VL - 61
SP - 2779
EP - 2794
JO - International Journal of Production Research
JF - International Journal of Production Research
IS - 8
ER -