Decision support system for distributed manufacturing based on input-output analysis and economic complexity
This work addresses supply chain adaptability for manufacturing companies during crises, but it is incremental as it builds on existing concepts like product space and input-output analysis.
The authors tackled the problem of supply chain disruptions by developing a recommender system that uses product proximity and input-output analysis to identify local suppliers or substitute suppliers for companies, demonstrating its application with French data to enhance industrial resilience.
The disruption of supplies during the Covid-19 crisis has led to shortages but has also shown the adaptability of some companies, which have succeeded in adapting their production chains quickly to produce goods experiencing shortages: hydroalcoholic gel, masks, and medical gowns. These productive jumps from product A to product B are feasible because of the know-how proximity between the two classes of products. The proximities were computed from the analysis of co-exports and resulted in the construction of the product space. Based on the product space, as well as the customer-supplier relationships resulting from the input-output matrices, we propose a recommender system for companies. The goal is to promote distributed manufacturing by recommending a list of local suppliers to each company. As there is not always a local supplier for a desired product class, we consider the proximity between products to identify, in the absence of a supplier, a substitute supplier able to adapt its production tools to provide the required product. Our experiments are based on French data, from which we build a graph of synergies illustrating the potential productive links between companies. Finally, we show that our approach offers new perspectives to determine the level of territories' industrial resilience considering potential productive jumps.