Lead time sensitivity of product availability in supply chain resilience analysis

The concept of lead time sensitivity is proposed in the setting of supply chain resilience. We define lead time sensitivity as the extent to which supply chain performance curve, (e.g., demand fulfilment) reacts to delays in lead time. If a lead time change for a product causes a substantial change in the product availability, (e.g., a shortage leading to a non-fulfilled demand), it is considered sensitive. Through simulations using anyLogistix, we find out that variations in lead time sensitivity directly reflect product availability variations under disruptions, and lead time sensitivity coefficients can be used as indicators of resilience. Our approach contributes to research on supply chain resilience and ripple effect by proposing the concept of lead time sensitivity and can be immediately used in practice for stress-testing the supply chains. We discuss the practical application of our approach for different sourcing strategies.