The distinction between disruptions and recurrent / continuous risks is commonly used by researchers and practitioners in supply chain management. But how should the differences be reflected in the supply chain planning process? Is it necessary to differentiate between the risk types here as well?
In 2007 Sunil Chopra et al. analyzed this question in depth.
The demand of many products is connected to the weather patterns during and before the selling season. Ice cream can be best sold during warm summers, of course. But also other food products or clothes exhibit weather dependent demand pattern.
In his 2009 paper Brian Tomlin analyzes strategies to mitigate disruption risks in a three echelon supply chain.
Setting
Focus in his research is a single company, with its suppliers and customers. The objective is to maximize expected utility, while demand and supply are uncertain. There are two products available which can be used as substitutes. The time horizon for the decision maker is one season where the products can be sold.
Today I finally read one of the most cited articles on subjective risk in general. In 1987 March and Shapira set out to shake up the existing theories on the perception and processing of risks by managers. Accordingly, they aggregated the information from various surveys on this topic.
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.
This is another look at flexibility strategies to reduce uncertainty in supply chains. This time from the point of view of five Chinese companies in the apparel industry.
Supply Chain Risk manifests itself in many ways. Today the German airlines restored their regular flight schedule again after six days of no or limited air traffic, after the latest eruption of the Eyjafjallajökull vulcano on Iceland.
The consequences of such events only rarely become evident, but in the background emergency plans have to be executed (or developed).
Submitted by Daniel Dumke on Mon, 2010-11-08 15:38
Paper
Global Manufacturing Outlook
Year:
2010
A current report by KPMG shows that international manufacturers are increasingly considering effects of supplier selection on cost and potential risks. Nearly 200 companies participated globally in the survey. The full report can be downloaded here at KPMG, I just summarized the major findings.
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.
