DYNAMIC PRICING AS A MITIGATION STRATEGY AGAINST SUPPLY NETWORK DISRUPTIONS WITH PRICE-SENSITIVE DEMAND - AN AGENT-BASED MODEL

Supply chain disruptions can lead to immense financial losses for affected enterprises. Quantitative models which analyze the impact of disruptions and the effect of possible mitigation strategies on the overall network are needed to support the decision making process of practitioners. Therefore, we present an agent-based model of a supply network with eleven entities to analyze the benefits of dynamic pricing when confronted with material flow disruptions of different durations of two producers in the network. Our results show that dynamic pricing can reduce the financial burden of the total supply network but can also lead to strong interferences which entities are most affected by the disruption.