Stochastic Multi-Tier Supply Chain Resilience Optimization via Adaptive Dynamic Programming and Bayesian Demand Signal Decomposition

Authors

  • Noah Lewis Professor
  • Rowan Gonzalez Associate Professor
  • Jesse Baker PhD

Keywords:

supply chain resilience optimization, adaptive dynamic programming, Bayesian demand decomposition, stochastic supply chain modeling, multi-tier procurement networks, disruption recovery velocity, resilience elasticity coefficient, operational risk management, dynamic sourcing reconfiguration

Abstract

Contemporary global supply chains operate under compounding systemic disruptions, rendering traditional deterministic optimization frameworks structurally inadequate. This study proposes a hybrid stochastic optimization model integrating Adaptive Dynamic Programming (ADP) with Bayesian demand signal decomposition to enhance multi-tier supply chain resilience under uncertainty. Empirical validation is conducted using longitudinal operational datasets from manufacturing firms across three industry verticals over a 48-month horizon. The model demonstrates a statistically significant 23.7% improvement in disruption recovery velocity and a 17.4% reduction in total landed cost variance compared to conventional safety-stock and scenario-planning benchmarks. Furthermore, the framework introduces a novel resilience elasticity coefficient enabling real-time reconfiguration of sourcing node hierarchies. Findings carry substantive implications for operations executives and strategic procurement leaders navigating post-pandemic and geopolitical volatility contexts.

Author Biographies

Noah Lewis, Professor

Professor
University of Warwick
Warwick Business School, University of Warwick, Coventry, CV4 7AL, United Kingdom

Rowan Gonzalez, Associate Professor

Associate Professor
Korea Advanced Institute of Science and Technology
KAIST College of Business, 85 Hoegi-ro, Dongdaemun-gu, Seoul, 02455, Republic of Korea

Jesse Baker, PhD

PhD
University of Toronto
Rotman School of Management, University of Toronto, 105 St. George Street, Toronto, Ontario, M5S 3E6, Canada

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Published

2024-12-24

Issue

Section

Articles