Analyzing and simulating supply chain disruptions to the automobile industry based on experiences of the Great East Japan Earthquake

Abstract

The Great East Japan Earthquake revealed serious weaknesses in the supply chain management (SCM) employed by Japanese industries, and particularly by the automobile industry. Observed supply chain disruptions and production line shutdowns are recognized as symbolic of weaknesses in industrial SCM. The Japanese automobile industry in particular is now keen to improve supply chain resiliency in terms of automobile assembly line continuity. In view of this, we i) review observed negative impacts of the Great East Japan Earthquake on the automobile industry, ii) identify current strategies being evaluated by the automobile industry for improving supply chain resiliency, iii) develop a numerical supply chain model for the automobile industry, and iv) evaluate efforts to improve SCM practice through inclusion of risk mitigation measures. We conclude with recommendations for policy development to further strengthen automobile industry resiliency.