Reducing the risk of supply chain disruptions

MIT Sloan Management Review

Volumn 55, Issue 3, 2014, Pages 73-80

  Chopra, Sunil ^a   Sodhi, Manmohan S ^b  

^a NORTHWESTERN UNIVERSITY   (United States)

^b CITY UNIVERSITY   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84898015953     PISSN: 15329194     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (17)

1. C.S. Tang, "Robust Strategies for Mitigating Supply Chain Disruptions," International Journal of Logistics Research and Applications 9, no. 9 (2006): 33-45.
2. S. Chopra and M.S. Sodhi, "Managing Risk to Avoid Supply-Chain Breakdown," MIT Sloan Management Review 46, no. 46(fall 2004): 53-61.
3. M. Lim, A. Bassamboo, S. Chopra and M.S. Daskin. "Flexibility and Fragility: Use of Chaining Strategies in the Presence of Disruption Risks," Northwestern University research report, 2010.
4. See K. Capell, "Fashion Conquistador," Business-Week, Sept. 4, 2006.
5. R.H. Hayes and S.C. Wheelwright, "Link Manufacturing Process and Product Life Cycles," Harvard Business Review 57, no. 57 (January-February 1979): 133-40.
6. J. Birchall and E. Rigby, "Oil Costs Force P&G to Rethink Supply Network," Financial Times, June 26, 2008.
7. L. Lucas, "Diageo Overhauls Its Supply Chain," Financial Times, March 11, 2013. In the past, Diageo largely sold a few premium brands globally (such as premium Scotch whiskey). These were sourced from a central location and distributed globally. As Diageo has grown in emerging markets, it has started selling many other products locally. While the sourcing for Scotch whiskey cannot be decentralized for obvious reasons, Diageo has worked hard to locally source as many products as possible, creating a more regional supply chain.
8. M.S. Sodhi and C.S. Tang, "Managing Supply Chain Risk" (New York: Springer, 2012), chap. 5.
9. See, for instance, L.N. Van Wassenhove, "Humanitarian Aid Logistics: Supply Chain Management in High Gear," Journal of the Operational Research Society 57, no. 57 (May 2006): 475-489.
10. Chopra and Sodhi, "Managing Risk to Avoid Supply-Chain Breakdown."
11. Chopra and Sodhi, "Managing Risk to Avoid Supply-Chain Breakdown."
12. M. Sodhi and S. Lee, "An Analysis of Sources of Risk in the Consumer Electronics Industry," Journal of the Operational Research Society 58, no. 58 (November 2007): 1430-1439.
13. N.N. Taleb, "The Black Swan: The Impact of the Highly Improbable" (New York: Random House, 2007).
14. Sodhi and Tang, "Managing Supply Chain Risk," chap. 3.
15. M.K. Lim, A. Bassamboo, S. Chopra and M.S. Daskin, "Facility Location Decisions With Random Disruptions and Imperfect Estimation," Manufacturing & Service Operations Management 15, no. 15 (spring 2013): 239-249;
16. and B. Tomlin, "On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risk," Management Science 52, issue 5 (May 2006): 639-657. In a different setting, Tomlin (2006) observed results similar to Lim et al. (2013) from misestimating the duration of a disruption. He found that underestimating the duration of a disruption typically led to significantly larger increases in cost than overestimating the duration of a disruption.
17. Chopra and Sodhi, "Managing Risk to Avoid Supply-Chain Breakdown."