Today I review an article called “18 Ways to Guard Against Disruption”. It was published in the Supply Chain Management Review in 2005 by Elkins et al.
At this year’s HICL conference in Hamburg, I was able to present some of my own research. In the follow-up discussions several points were highlighted, especially focussing on the viability of supply chain wide cooperation and collaboration efforts and on the difficulties of doing a realistic quantification of supply chain risks.
Today’s paper is brand new and based on the dissertation works of Roberto Perez-Franco. It can be considered as a summary of the current state of the art in supply chain strategy and extends knowledge in the field of strategy evaluation. It can be downloaded for example from Yossi Sheffi’s homepage at the MIT.
I haven’t really touched on the early research on risks in supply chain management. One major stream is on random yields. Parlar and Wang (1993) were one of the firsts to extend the classic Newsboy and EOQ (Economic Order Quantity) models to include uncertainty.
Submitted by Daniel Dumke on Mon, 2011-09-26 15:17
Paper
Managing Risks of Supply-Chain Disruptions: Dual Sourcing as a Real Option
Published In:
Massachusetts Institute of Technology, Master Thesis
Year:
2003
This is the seventh contribution to my series on doctoral and master dissertations on Supply Chain Risk Management. This again is a master thesis from the MIT. An immense effort and dedication is spent on these works only to find the results hidden in the libraries. So the goal is raise interest in the research of my peers.
I just recently had a discussion with a professor at Mahidol University (Bangkok), where I was staying for a research exchange, on how knowledge can be used to mitigate risks within a supply chain.
This is already my second article (click here for the first) about managing supply chain risks in the chemical industry. This time by Paul R. Kleindorfer and Germaine H. Saad from Wharton and the Widener University. But this industry is quite interesting since it has to withstand a multitude of risks, so let’s get right to business:
Today’s article is from the late 90s, but sets a great example for research methodology in supply chain risk management. But don’t worry, I will focus on the results, since they’re very interesting as well. The objective of today’s article (Supply Chain Management in Food Chains: Improving Performance by Reducing Uncertainty) is to show strategies (here called principles) to reduce uncertainty, and at the same time show the beneficial effects of reduced uncertainty.
Many articles, including my own research show, that companies tend to focus largely on risk mitigation measures concerning the supply side. Only little is done to include demand side risks or demand side measures into the mitigation of supply chain risks. The study “Pricing During Disruptions: A Cause of the Reverse Bullwhip Effect” focusses on optimal pricing measures during a disruption. And so it helps to close the gap a little bit.
In today’s post I would like to highlight how the concepts of resilience and sustainability can be aligned.
Resilience is often interpreted as a property of a supply chain most often associated in a risk management sense; sustainability on the other hand, usually refers more to social and environmental goal orientation. So how can these concepts be aligned?
