Dataset Information

Novel Indicators for the Quantification of Resilience in Critical Material Supply Chains, with a 2010 Rare Earth Crisis Case Study.

ABSTRACT: We introduce several new resilience metrics for quantifying the resilience of critical material supply chains to disruptions and validate these metrics using the 2010 rare earth element (REE) crisis as a case study. Our method is a novel application of Event Sequence Analysis, supplemented with interviews of actors across the entire supply chain. We discuss resilience mechanisms in quantitative terms-time lags, response speeds, and maximum magnitudes-and in light of cultural differences between Japanese and European corporate practice. This quantification is crucial if resilience is ever to be taken into account in criticality assessments and a step toward determining supply and demand elasticities in the REE supply chain. We find that the REE system showed resilience mainly through substitution and increased non-Chinese primary production, with a distinct role for stockpiling. Overall, annual substitution rates reached 10% of total demand. Non-Chinese primary production ramped up at a speed of 4% of total market volume per year. The compound effect of these mechanisms was that recovery from the 2010 disruption took two years. The supply disruption did not nudge a system toward an appreciable degree of recycling. This finding has important implications for the circular economy concept, indicating that quite a long period of sustained material constraints will be necessary for a production-consumption system to naturally evolve toward a circular configuration.

SUBMITTER: Sprecher B

PROVIDER: S-EPMC5770137 | biostudies-literature | 2017 Apr

REPOSITORIES: biostudies-literature

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Novel Indicators for the Quantification of Resilience in Critical Material Supply Chains, with a 2010 Rare Earth Crisis Case Study.

Sprecher Benjamin B Daigo Ichiro I Spekkink Wouter W Vos Matthijs M Kleijn René R Murakami Shinsuke S Kramer Gert Jan GJ

Environmental science & technology 20170317 7

We introduce several new resilience metrics for quantifying the resilience of critical material supply chains to disruptions and validate these metrics using the 2010 rare earth element (REE) crisis as a case study. Our method is a novel application of Event Sequence Analysis, supplemented with interviews of actors across the entire supply chain. We discuss resilience mechanisms in quantitative terms-time lags, response speeds, and maximum magnitudes-and in light of cultural differences between ...[more]

PMID: 28257181

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Project description:Trying to meet the Sustainable Development Goals is challenging. Food supply chains may have to become more efficient to meet the increasing food requirement of 10 Billion people by 2050. At the same time, food and nutrition security are at risk from increasingly likely shocks like extreme climate events, market shocks, pandemics, changing consumer preferences, and price volatility. Here we consider some possibilities and limitations regarding the improvement of resilience (the capacity to deal with shocks) and efficiency (here interpreted as the share of produced food delivered to consumers) of food supply chains. We employ an Agent Based Model of a generic food chain network consisting of stylized individuals representing producers, traders, and consumers. We do this: 1/ to describe the dynamically changing disaggregated flows of crop items between these agents, and 2/ to be able to explicitly consider agent behaviour. The agents have implicit personal objectives for trading. We quantify resilience and efficiency by linking these to the fraction of fulfilment of the overall explicit objective to have all consumers meet their food requirement. We consider different types of network structures in combination with different agent interaction types under different types of stylized shocks. We find that generally the network structures with higher efficiency are also more sensitive to shocks, while less efficient network types display more resilience. At first glance these results seem to confirm the existence of a system-level trade-off between resilience and efficiency similar to what is reported in business management and ecology literature. However, the results are modified by the trading interactions and the type of shock. In our simulations resilience and efficiency are affected by 'soft' boundaries caused by the preference and trust of agents (i.e., social aspects) in trading. The ability of agents to switch between trading partners represents an important aspect of resilience, namely a capacity to reorganize. These insights may be relevant when considering the reorganization of real-life food chains to increase their resilience to meet future food and nutrition security goals.

Dataset Information

Novel Indicators for the Quantification of Resilience in Critical Material Supply Chains, with a 2010 Rare Earth Crisis Case Study.

Publications

Novel Indicators for the Quantification of Resilience in Critical Material Supply Chains, with a 2010 Rare Earth Crisis Case Study.

Similar Datasets

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