DOI: 10.1093/imaman/dpae007 ISSN: 1471-678X
A Flexible Time-to-Build Model of Supply Chain Disruptions
James Kahn- Applied Mathematics
- Management Science and Operations Research
- Strategy and Management
- General Economics, Econometrics and Finance
- Modeling and Simulation
- Management Information Systems
Abstract
This paper examines the impact of temporary supply chain disruptions in a general equilibrium model with multiple stages of production for capital goods and a flexible time-to-build structure. Production disruptions at one or more stages result in declines in overall shipments and increases in the ratios of unfilled orders and work-in-process inventories to shipments. The model is calibrated to industries in durable goods manufacturing during the Covid-19 pandemic, and is shown to generate realistic dynamic responses to temporary production disruptions.