The diverging control policy’s hand in supranational supply chain reconfiguration
Abstract :
The efficiency of supranational supply chains is frequently compromised by divergent and evolving policies
across countries. A novel assessment method for prolonged disruptive circumstances is presented, wherein
supply chain performance is influenced by various mitigating control policies. The impact of control policies
with concomitant labor productivity losses and perturbed delivery capabilities in supply chain networks is
demonstrated through a detailed epidemic case study with diverging control approaches. First, a game-theoretic
framework is employed through which the cost-optimal Nash equilibrium profile of diverging control strategies
between countries is determined. Subsequently, cost-based strategic options for supply chain relocation are
revealed through numerical simulations, providing guidance for entrepreneurial decision-making. The analysis
is conducted on a realistically designed multiplex network that integrates a supply chain network layer with
the case study’s epidemic SEIRD-diffusion layer. Two interconnected countries with distinct GDPs are examined
as they implement Nash equilibrium policies for Epidemic Control Cost (ECC). These policies are characterized
by strong versus weak confinement, and higher versus lower vaccine efficiency. Through this innovative
methodology, an explanation of policymakers’ diverging mitigation policies and the potential decisions for
supply chain relocation toward the comparatively better-protected region are elucidated, with consideration
given to each region’s Cost from Relocation and supply chain capacity Loss (LRC).
J. B. Broekaert, D. La Torre, F. Hafiz, X. Brusset, (2025), International Journal of Production Economics,
doi: 10.1016/j.ijpe.2025.109567.