For many years sustainability risks have been largely neglected. Reputational damages caused by incidents like the Brent Spar platform can reach tens of millions of dollars. But in a supply chain context companies are not only held responsible for their own actions but also for the actions of their suppliers.
In their 2010 paper Foerstl et al. analyze supplier sustainability risk and develop and test a framework for its mitigation.
There are several scientific research centers on supply chain risks in the US (as around the world): The east coast has several researcher on this topic e.g.
In the United States May 2008 was declared to be “Resilience Month” with several congressional hearings on the topic of how to improve organizational resilience on a societal level.
Yossi Sheffi from the MIT is one of the leading researchers on supply chain resilience and he was part of the hearings as well.
Today I want to describe yet another supply chain case study where Monte Carlo simulation is used as decision support for strategic / tactical supply chain decisions.
