XX Models for Reliable Supply Chain Network Design

Recent examples of disruptions in the news suggest a strong geographical dimension to supply chain disruptions, and to their effects. For example: • The west-coast port lockout in 2002 strangled U.S. retailers' supply lines while east-coast ports were essentially unaffected (Greenhouse 2002) • The foot-and-mouth disease scare in the U.K. in 2001 caused the U.S. to ban imports of British meat (Marquis and McNeil 2001). • The suspension of the license of the Chiron plant in Liverpool, England reduced the U.S. supply of the influenza vaccine by nearly 50% during the 2004/5 flu season (Pollack 2004). These facilities were located in or near New Orleans but were integral parts of global supply chains. These examples highlight the need for supply chain design models that account for the spatial nature of both supply chains and their operation. In this chapter, we present several models for reliable facility location in a supply chain that is vulnerable to disruptions. Since facility location decisions are