ABSTRACT

In this chapter we review the literature and explain the importance of disruption management in supply networks. We focus on robustness a key element in managing disruptions in supply networks. We illustrate the role of robustness in the context of architecture of fail-safe networks. We elaborate on robustness in supply networks under disruptions while introducing a nonlinear robust design modeling approach. The proposed model is exercised using an example from a regional electric company while considering the design of the generation and transmission systems simultaneously with combined production and maintenance constraints of power plants. We examine robust design in supply networks in detail to manage disruptions, and we explain the benefits of developing robust design modeling for designing or re-designing supply networks under disruptions.