Work

Critical Demand in a Stochastic Model of Flows in Supply Networks

Year: 2025

Type: article

Abstract: Supply networks are essential for modern production, yet their critical properties remain understudied. We present a stochastic model with random production capacities to analyze material flow to a root node, focusing on topology and buffer stocks. The critical demand, where unsatisfied demand diverges, is examined mostly through numerical simulations. Without stocks, minimal production dictates behavior, making topology irrelevant. With stocks, memory effects arise, making topology crucial. Increased local connectivity is beneficial: firms should favor broad, short supply chains over long, narrow ones.

Source: Physical Review Letters

DOI: 10.1103/physrevlett.134.217401

Authors: Yannick Feld, Marc Barthelemy

Institutions: Université Paris-Saclay, Institut de Physique Théorique, Centre d'Analyse et de Mathématique Sociales

Language: English

Topic: Supply Chain Resilience and Risk Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W4410893064

FWCI: 5.423

Cites: 17

Cited by: 6

Related to: 10