Analysis of Vulnerabilities in Global Production Networks Through Disruption Simulation

In today’s globalized and increasingly volatile economy, manufacturing companies are faced with the challenge of increasing the production network’s resilience in order to deal effectively with upcoming unforeseen external disruptions. Companies must be able to assess these disruptions but cannot influence them directly. Therefore, this paper aims to develop a comprehensive understanding of how to identify and analyze vulnerabilities within global production networks in order to strengthen the network’s resilience. A methodology is presented that enables companies to determine the internal vulnerabilities of the production network by simulating possible disruptions along the processes within the network in order to identify the critical points within the network. The methodology in this paper is based on a comprehensive literature review and the development of a simulation-based approach to vulnerability analysis. First, the basic concepts of resilience and disruptions in the context of global production networks are discussed. Building on existing scientific work, a framework is developed that allows a systematic mapping of both the structural characteristics and the dynamic behavior of production networks under the influence of potential disruptive factors. An approach is derived to analyze the structural characteristics of production networks using disruption simulations to identify the vulnerabilities with the greatest impact on the network. In this way, critical network elements can be identified and assessed.