Trade-offs in Supply Chain System Risk Mitigation

Olson, David L.; Swenseth, Scott R.

doi:10.1002/sres.2299

Cited by 22 publications

(12 citation statements)

References 65 publications

(98 reference statements)

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“…Second,the results highlighted the significant impact of two phenomena on supply chain performance: 1) environmental disruptions (Trkman and McCormack, 2009;Olson and Swenseth, 2014);and 2) supplier dependence (Babich et al, 2007;Wagner et al, 2009).In our study, we examined the extent to which a regionalized supply chain along with redundant entities can mitigate supply chain disruption due to environmental and/or interlinked supplier disruptions.This provided a more nuanced explanation of the effectiveness of the redundancy strategies in improving the responsiveness of the firm to dependent and independent supplier and environmental disruptions. In our sensitivity analyses, we carefully examined how assigning different values for disruption probabilities and dependencies can affect the final result of each model.…”

Section: Managerial Implicationsmentioning

confidence: 94%

An assessment of supply chain disruption mitigation strategies

Kamalahmadi

Parast

2017

International Journal of Production Economics

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We assess the effectiveness of incorporating three types of redundancy practices(pre-positioning inventory, backup suppliers, and protected suppliers) intoa firm's supply chainthat isexposed to two types of risk: supply risk and environmental risk. Supply risk disrupts an individual supplier, while environmental risk makes a number of suppliers in a given region unavailable.An additional factor is supplier interdependence,where a disruption in one supplier may also disrupt other active suppliers. Utilizing the concept of a decision tree to capture different disruption scenarios, we develop a two-stage mixed-integer programming (two-stage MIP) model as a General Model to address the problem of supplier selection and order allocationunder supplier dependencies and risk of disruptions.In the General Model, multi-sourcing is the only supplier strategy that the firm implements. Then we develop three separate extensions of theGeneral Model,one foreach of the three redundancy practices, and evaluate the expected supply chain costof each extended model. We quantitatively show how adding redundancy to the supply chain in different forms, along with contingency plans, can help firms mitigate the impact of supply chain disruptions.The findings suggest thatall three strategies reduce costs and risks compared to the General Model. An analysis of reliability, risks, dependence, and costs is conducted on each strategy to provide insights into supplier selection, demand allocation, and capability development in a supply chain under supply chain risks.Finally, we show that regionalizinga supply chain is an effective way to mitigate the negative impacts ofenvironmental disruptionson the supply chain.

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“…Increased computing capacity, data inter‐operability and improved modelling packages have facilitated the development of holistic models to represent chain‐oriented and network‐oriented flows, feedbacks, interactions between actors and the interaction of separate systems. Systems approaches have been widely advocated for management in value chains (Xu, ), and SD has been applied to primary industry value chain management (Rich et al, ; Olsen and Swenseth, ). The analysis of such dynamics to improve strategy and policy requires multidimensional thinking, which integrates the views of actors within networks where linkages between actors can be either contextually active or inactive and change may occur between actors and across networks (Abdirahman et al, ).…”

Section: Chain Analysis In the Primary Industry Contextmentioning

confidence: 99%

Primary Industry Chains and Networks: Analysis for Public and Private Interests

et al. 2016

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Modern primary industry makes obsolete the conventional analysis of private and social performance. This is due to the dominance of chain failure as opposed to the more familiar market failure. This paper makes the case that value addition dominates aspirations for primary industries, and vertical coordination and shifts in commercial power balances feature in the sharing of benefits within value chains. Moreover, complexity in chain relationships and some particular features of primary industry bring challenges to forward planning and concerted effort. Value addition in New Zealand's forestry and wood products' industry presents several such challenges, and these are examined with a qualitative system dynamics model. Potential policy responses that eliminate chain failure are discussed in association with the Australian beef industry research model. The paper advocates joint industry‐university‐government action in terms of research and skills development. Copyright © 2016 John Wiley & Sons, Ltd.

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“…shortage. Purchase risk can be addressed using a tightly integrated communication system that enables information to flow seamlessly to the right supply chain entity at the right time (Buscher and Wels, 2010;Hajmohammad and Vachon, 2016;Li et al, 2015;Olson and Swenseth, 2014). Using multiple suppliers and establishing strong partnerships are potential strategies to overcome the long-distance risk.…”

Section: << Insert Figure 6 About Here >>mentioning

confidence: 99%

Reverse logistics risk management: identification, clustering and risk mitigation strategies

Panjehfouladgaran¹,

Lim²

2020

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PurposeReverse logistics (RL), an inseparable aspect of supply chain management, returns used products to recovery processes with the aim of reducing waste generation. Enterprises, however, seem reluctant to apply RL due to various types of risks which are perceived as posing an economic threat to businesses. This paper draws on a synthesis of supply chain and risk management literature to identify and cluster RL risk factors and to recommend risk mitigation strategies for reducing the negative impact of risks on RL implementation.Design/methodology/approachThe authors identify and cluster risk factors in RL by using risk management theory. Experts in RL and supply chain risk management validated the risk factors via a questionnaire. An unsupervised data mining method, self-organising map, is utilised to cluster RL risk factors into homogeneous categories.FindingsA total of 41 risk factors in the context of RL were identified and clustered into three different groups: strategic, tactical and operational. Risk mitigation strategies are recommended to mitigate the RL risk factors by drawing on supply chain risk management approaches.Originality/valueThis paper studies risks in RL and recommends risk management strategies to control and mitigate risk factors to implement RL successfully.

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“…Somewhat different from the previous articles, a review by Olson and Swenseth [20] examined supply chain risk from a systems-theoretic perspective, involving tradeoffs in balancing costs, risk, and, increasingly, environmental considerations, for green supply chain management, risk, and efficiency. The authors discussed the usefulness of applying systems thinking to the decision-making process in supply chain management, to more effectively handle these tradeoffs.…”

Section: Supply Chain Risk Management Definitions and Frame-mentioning

confidence: 99%

A Network-Based Impact Measure for Propagated Losses in a Supply Chain Network Consisting of Resilient Components

Valenzuela

Xiao

et al. 2018

Complexity

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The topology of a supply chain network affects the impacts of disruptions in it. We formulate a network-based measure of the impact of a disruption loss in a supply chain propagating downstream from an originating node. The measure takes into account the loss profile of the originating node, the structure of the supply network, and the resilience of the network components. We obtain an analytical expression for the impact measure under a beta-distributed initial loss (generalizable to any continuous distribution supported on the interval 0,1), under a breakthrough scenario (in which a fraction of the initial production loss reaches a focal company downstream as opposed to containment upstream or at the originating point). Furthermore, we obtain a closed-form solution for a supply chain network with a k-ary tree topology; a numerical study is performed for a scale-free network and a random network. Our proposed approach enables the evaluation of potential losses for a focal company considering its supply chain network structure, which may help the company to plan or redesign a robust and resilient network in response to different types of disruptions.

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“…Despite the presence of a considerable amount of SCRM related academic literature (Cohen & Kunreuther, 2007;Heckmann et al, 2015;Ho et al, 2015;Manuj & Mentzer, 2008b;Olson & Swenseth, 2014;Olson & Wu, 2010;Pfohl et al, 2010;Simangunsong et al, 2012;Tang, 2006 a,b), the topic remains attractive and emerging, and the need to build frameworks for the subject persists (Fahimnia et al, 2015). Different frameworks for SCRM are present in the literature (Berle et al, 2011;Berle et al, 2013;Bradley, 2014;Cohen & Kunreuther, 2007;Elleuch et al, 2014;Fazli et al, 2015;Ghadge et al, 2013;Giannakis & Louis, 2011;Giannakis & Papadopoulos, 2016;Hachicha & Elmsalmi, 2014;Ho et al, 2015;Kern et al, 2012;Lavastre et al, 2014;Manuj & Mentzer, 2008a;Micheli et al, 2014;Oehmen et al, 2009;Pradhan & Routroy, 2014;Radivojević & Gajović, 2014;Ritchie & Brindley, 2007;Tummala & Schoenherr, 2011).…”

Section: Introductionmentioning

confidence: 99%

Phases and tools for supply chain risk management: a systematic literature review

et al. 2020

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Supply chain risk management (SCRM) has been widely discussed in the academic literature and several models have been proposed in recent years, but there is a need for a model encompassing phases and tools for SCRM. This study presents a systematic literature review (SLR) of 254 abstracts and 68 full-text papers. The SLR made it possible to identify and define the main phases for the SCRM, as well as the tools proposed for each phase. There is a concentration of efforts in the phases of identification, assessment, and selection of risk management strategies and a limited number of studies in monitoring and controlling risks. The article offers a global SCRM framework, contributing to the theoretical discussions and a practical guide to implementation related to SCRM.

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Trade-offs in Supply Chain System Risk Mitigation

Cited by 22 publications

References 65 publications

An assessment of supply chain disruption mitigation strategies

Primary Industry Chains and Networks: Analysis for Public and Private Interests

Reverse logistics risk management: identification, clustering and risk mitigation strategies

A Network-Based Impact Measure for Propagated Losses in a Supply Chain Network Consisting of Resilient Components

Phases and tools for supply chain risk management: a systematic literature review

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