Supply chain resilience for managing the ripple effect in Industry 4.0 for green product diffusion

Navin K. Dev · Zach G. Zacharia · Sanjeev Swami

71 citations0/0 files storedInternational Journal of Physical Distribution & Logistics Management

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Sustainable Supply Chain Management Supply Chain and Inventory Management Supply Chain Resilience and Risk Management

Abstract

Purpose The purpose of this paper is to examine (1) how the recovery speed using promotional investment and (2) distributed production using additive manufacturing (AM) improve the resilience of the supply chain to manage any disruptions in the diffusion of green products. Design/methodology/approach The environmental performance, service level performance and economic performance are the measures of interest. These measures are studied through the integration of inventory and production planning (I&PP) of the reverse logistics system and consumer behavior using Bass (1969) model of diffusion of innovation under the paradigm of Industry 4.0 architecture. The Taguchi experimental design framework was used for the simulation analysis. Findings The adoption patterns based on the Bass model in conjunction with recovery speed and production on AM during the disruption period suggest that there exist tradeoff decisions between various combinations of information-sharing and I&PP policies. Practical implications The extensive sensitivity analyses provide real-time support for managerial decisions. Besides the potentials of Industry 4.0 capabilities, the present research suggests paying close attention to the recovery speed in conjunction with the inventory management system. Social implications The integration of consumers' behavior (Bass model) to digital technologies is an additional contribution of the present research toward sustainability issues from the social perspective. Originality/value Previous research studies have discussed resilience to manage the ripple effect. However, none of them have addressed the changing scope of resilience to manage the ripple effect caused by the disruption in the diffusion of green products in a reverse logistics setup.

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References

1969A New Product Growth for Model Consumer Durables 1976A New Product Growth Model for Consumer Durables 2005Do green supply chains lead to competitiveness and economic performance?2020Viability of intertwined supply networks: extending the supply chain resilience angles towards survivability. A position paper motivated by COVID-19 outbreak 2018The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics 2020Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic 2010Innovation diffusion and new product growth models: A critical review and research directions 2017Ripple effect in the supply chain: an analysis and recent literature

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2023Supply chain resilience: new challenges and opportunities 2022Deploying Industry 4.0 Enablers to Strengthen Supply Chain Resilience to Mitigate Ripple Effects: An Empirical Study of Top Relay Manufacturer in China 2023Interconnectedness between Supply Chain Resilience, Industry 4.0, and Investment 2024Unearthing the interplay between organisational resources, knowledge and industry 4.0 analytical decision support tools to achieve sustainability and supply chain wellbeing

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