A dynamic sourcing strategy considering supply disruption risks

International Journal of Production Research

Volumn 54, Issue 7, 2016, Pages 2170-2184

  Tsai, W C ^a  

^a I SHOU UNIVERSITY   (Taiwan)

Author keywords

risk management; supplier decision making; supplier selection

Indexed keywords

COSTS; DECISION MAKING; FAILURE ANALYSIS; LOSSES; RISK ASSESSMENT; RISK MANAGEMENT; SENSITIVITY ANALYSIS;

FINANCIAL LOSS; INPUT PARAMETER; OPTIMAL NUMBER; SOURCING STRATEGIES; SUPPLIER SELECTION; SUPPLY DISRUPTION; SUPPLY INTERRUPTION; TIME DEPENDENT;

COST BENEFIT ANALYSIS;

EID: 84953240496     PISSN: 00207543     EISSN: 1366588X     Source Type: Journal    
DOI: 10.1080/00207543.2015.1129465     Document Type: Article

References (65)

1. Aissaoui, N., M. Haouari, and, E. Hassini. 2007. " Supplier Selection and Order Lot Sizing Modeling: A Review." Computers and Operations Research 34 (12): 3516-3540. 10.1016/j.cor.2006.01.016
2. Atwater, C., R. Gopalan, R. Lancioni, and, J. Hunt. 2014. " Measuring Supply Chain Risk: Predicting Motor Carriers Ability to Withstand Disruptive Environmental Change Using Conjoint Analysis." Transportation Research Part C: Emerging Technologies 48: 360-378. 10.1016/j.trc.2014.09.009
3. Berger, P. D., and, A. Z. Zeng. 2006. " Single versus Multiple Sourcing in the Presence of Risks." Journal of the Operational Research Society 57 (3): 250-261. 10.1057/palgrave.jors.2601982
4. Berger, P. D., A. Gerstenfeld, and, A. Z. Zeng. 2004. " How Many Suppliers are Best? A Decision-analysis Approach." Omega 32: 9-15. 10.1016/j.omega.2003.09.001
5. Berger, P. D., A. Gerstenfeld, and, A. Z. Zeng. 2005. " The Optimal Use of Standby Suppliers: A Decision-analysis Approach." International Journal of Logistics 8 (1): 67-79. 10.1080/13675560412331330151
6. Blackhurst, J. V., K. P. Scheibe, and, D. J. Johnson. 2008. " Supplier Risk Assessment and Monitoring for the Automotive Industry." International Journal of Physical Distribution and Logistics Management 38 (2): 143-165. 10.1108/09600030810861215
7. Braunscheidel, M. J., and, N. C. Suresh. 2009. " The Organizational Antecedents of a Firms Supply Chain Agility for Risk Mitigation and Response." Journal of Operations Management 27 (2): 116-140
8. Carbone, J. 2003. " Delphi Demands Lowest Total Cost from Suppliers." Purchasing 132 (14): 15-17
9. Chopra, S., and, M. S. Sodhi. 2004. " Managing Risk to Avoid Supply-chain Breakdown." MIT Sloan Management Review 46: 53-61
10. Christopher, M., A. McKinnon, J. Sharp, R. Wilding, H. Peck, P. Chapman, U. Juttner, and, Y. Bolumole. 2002. Supply Chain Vulnerability. Cranfield: Cranfield University
11. Costantino, N., and, R. Pellegrino. 2010. " Choosing between Single and Multiple Sourcing Based on Supplier Default Risk: A Real Options Approach." Journal of Purchasing & Supply Management 16 (1): 27-40
12. Ellis, S. C., J. Shockley, and, R. M. Henry. 2011. " Making Sense of Supply Disruption Risk Research: A Conceptual Framework Grounded in Enactment Theory." Journal of Supply Chain Management 47 (2): 65-96. 10.1111/j.1745-493X.2011.03217.x
13. Friedman, T. L. 2005. The World is Flat: A Brief History of the Twenty-first Century. Straus and Giroux, NY: Farrar
14. Giunipero, L. C., and, R. A. Eltantawy. 2004. " Securing the Upstream Supply Chain: A Risk Management Approach." International Journal of Physical Distribution & Logistics Management 34 (9): 698-713
15. Glock, C. H. 2012. " Single Sourcing versus Dual Sourcing under Conditions of Learning." Computers & Industrial Engineering 62 (1): 318-328
16. Harland, C., R. Brenchley, and, H. Walker. 2003b. " Risk in Supply Networks." Journal of Purchasing and Supply Management 9: 51-62. 10.1016/S1478-4092(03)00004-9
17. Hendricks, K. B., and, V. R. Singhal. 2005. " Association between Supply Chain Glitches and Operating Performance." Management Science 51: 695-711. 10.1287/mnsc.1040.0353
18. Hines, W. W., and, D. C. Montgomery. 1990. Probability and Statistics in Engineering and Management Science. New York: Wiley
19. Hookway, J., and, A. Poon. 2011. " Crisis Tests Supply Chains Weak Links." The Wall Street Journal,. March 18
20. Hou, J., A. Z. Zeng, and, L. Zhao. 2010. " Coordination with a Backup Supplier through Buy-back Contract under Supply Disruption." Transportation Research Part E: Logistics and Transportation Review 46 (6): 881-895. 10.1016/j.tre.2010.03.004
21. Johnson, M. E. 2001. " Learning from Toys: Lessons in Managing Supply Chain Risk from the Toy Industry." California Management Review 43 (3): 106-124. 10.2307/41166091
22. Johnson, P. F., M. Leenders, and, A. Flynn. 2011. Purchasing and Supply Management. London: McGraw-Hill
23. Kauffman, R. G., and, P. T. L. P. Popkowski Leszczyc. 2005. " An Optimization Approach to Business Buyer Choice Sets: How Many Suppliers Should be Included? " Industrial Marketing Management 34: 3-12. 10.1016/j.indmarman.2004.05.001
24. Kern, D., R. Moser, F. Hartmann, and, M. Moder. 2012. " Supply Risk Management: Model Development and Empirical Analysis." International Journal of Physical Distribution and Logistics Management 42: 60-82. 10.1108/09600031211202472
25. Kirytopoulos, K., V. Leopoulos, G. Mavrotas, and, D. Voulgaridou. 2010. " Multiple Sourcing Strategies and Order Allocation: An ANP-AUGMECON Meta-model." Supply Chain Management: An International Journal 15 (4): 263-276
26. Kleindorfer, P. R., and, G. H. Saad. 2005. " Managing Disruption Risks in Supply Chains." Production and Operations Management 14 (1): 53-68
27. Klibi, W., and, A. Martel. 2012. " Scenario-based Supply Chain Network Risk Modeling." European Journal of Operational Research 223 (3): 644-658. 10.1016/j.ejor.2012.06.027
28. Knemeyer, A. M., W. Zinn, and, C. Eroglu. 2009. " Proactive Planning for Catastrophic Events in Supply Chains." Journal of Operations Management 27: 141-153. 10.1016/j.jom.2008.06.002
29. Lamberson, L. R. 1974. " An Evaluation and Comparison of Some Tests for the Validity of the Assumption That the Underlying Distribution of Life is Exponential." AIIE Transactions 6: 327-337. 10.1080/05695557408974971
30. Latour, A., 2001. " Trial by Fire: A Blaze in Albuquerque Sets off Major Crisis for Cellphone Giants-Nokia Handles Supply Shock with Aplomb as Ericsson of Sweden Gets Burned-was SISU the Difference? " Wall Street Journal, January 28
31. Lee, H. L., and, C. Billington. 1993. " Material Management in Decentralized Supply Chains." Operations Research 41 (5): 835-847. 10.1287/opre.41.5.835
32. Li, G., Y. Lin, S. Wang, and, H. Yan. 2006. " Enhancing Agility by Timely Sharing of Supply Information." Supply Chain Management: An International Journal 11 (5): 425-435. 10.1108/13598540610682444
33. Meena, P. L., and, S. P. Sarmah. 2013. " Multiple Sourcing under Supplier Failure Risk and Quantity Discount: A Genetic Algorithm Approach." Transportation Research Part E: Logistics and Transportation Review 50: 84-97. 10.1016/j.tre.2012.10.001
34. Minner, S. 2003. " Multiple-supplier Inventory Models in Supply Chain Management: A Review." International Journal of Production Economics 81-82: 265-279. 10.1016/S0925-5273(02)00288-8
35. Nahmias, S. 2005. Production and Operations Analysis. Singapore: McGraw-Hill
36. OMarah, K. 2009. " Supply Chain Risk, 2008-2009: As Bad as It Gets." AMR Research, May 21
37. Purdy, L., and, F. Safayeni. 2000. " Strategies for Supplier Evaluation: A Framework for Potential Advantages and Limitations." IEEE Transactions on Engineering Management 47 (4): 435-443. 10.1109/17.895339
38. Ross, S. M. 1987. Introductoin to Probability and Statistics for Engineers and Scientists. New York, NY: Wiley
39. Ruiz-Torres, A. J., and, F. Mahmoodi. 2007. " The Optimal Number of Suppliers Considering the Costs of Individual Supplier Failures." Omega 35: 104-115. 10.1016/j.omega.2005.04.005
40. Sarkar, A., and, P. K. J. Mohapatra. 2010. " Determining the Optimal Size of Supply Base with the Consideration of Risks of Supply Disruptions." International Journal of Production Economics 119 (1): 122-135
41. Sawik, T. 2010. " Single vs. Multiple Objective Supplier Selection in a Make to Order Environment." Omega 38: 203-212. 10.1016/j.omega.2009.09.003
42. Sawik, T. 2013. " Selection of Resilient Supply Portfolio under Disruption Risks." Omega 41 (2): 259-269. 10.1016/j.omega.2012.05.003
43. Sawik, T. 2014. " Optimization of Cost and Service Level in the Presence of Supply Chain Disruption Risks: Single Vs. Multiple Sourcing." Computers & Operations Research 51: 11-20
44. Schoenherr, T., V. M. Rao Tummala, and, T. P. Harrison. 2008. " Assessing Supply Chain Risks with the Analytic Hierarchy Process: Providing Decision Support for the Offshoring Decision by a US Manufacturing Company." Journal of Purchasing and Supply Management 14: 100-111. 10.1016/j.pursup.2008.01.008
45. Sinha, P. J., L. E. Whitman, and, D. Malzahn. 2004. " Methodology to Mitigate Supplier Risk in an Aerospace Supply Chain." Supply Chain Management: An International Journal 9 (2): 154-168. 10.1108/13598540410527051
46. Sodhi, M. M. S., B.-G. Son, and, C. S. Tang. 2012. " Researchers Perspectives on Supply Chain Risk Management." Production and Operations Management 21 (1): 1-13. 10.1111/poms.2011.21.issue-1
47. Speckman, R. E., and, E. W. Davis. 2004. " Risky Business: Expanding the Discussion on Risk and the Extended Enterprise." International Journal of Physical Distribution & Materials Management 34 (5): 414-433
48. Svensson, G. 2000. " A Conceptual Framework for the Analysis of Vulnerability in Supply Chains." International Journal of Physical Distribution & Logistics Management 30 (9): 731-750
49. Swink, M., and, G. Zsidisin. 2006. " On the Benefits and Risks of Focused Commitment to Suppliers." International Journal of Production Research 44 (20): 4223-4240. 10.1080/00207540600575761
50. Tajbakhsh, M. M., S. Zolfaghari, and, C. G. Lee. 2007. " Supply Uncertainty and Diversification: A Review." In Trends in Supply Chain Design and Management. Technologies and Methodologies, edited by H. Jung, F. F. Chen, and B. Jeong. London: Springer
51. Talluri, S., R. Narasimhan, and, A. Nair. 2006. " Vendor Performance with Supply Risk: A Chance-constrained DEA Approach." International Journal of Production Economics 100: 212-222. 10.1016/j.ijpe.2004.11.012
52. Tazelaar, F., and, C. Snijders. 2013. " Operational Risk Assessments by Supply Chain Professionals: Process and Performance." Journal of Operations Management 31 (1-2): 37-51. 10.1016/j.jom.2012.11.004
53. Thomas, D. J., and, J. E. Tyworth. 2006. " Pooling Lead-time Risk by Order Splitting: A Critical Review." Transportation Research Part E: Logistics and Transportation Review 42: 245-257. 10.1016/j.tre.2004.11.002
54. Tomlin, B. 2006. " On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks." Management Science 52 (5): 639-657. 10.1287/mnsc.1060.0515
55. Tomlin, B., and, Y. Wang. 2005. " On the Value of Mix Flexibility and Dual Sourcing in Unreliable Newsvendor Networks." Manufacturing and Service Operations Management 7 (1): 37-57. 10.1287/msom.1040.0063
56. Tuncel, G., and, G. Alpan. 2010. " Risk Assessment and Management for Supply Chain Networks: A Case Study." Computers in Industry 61 (3): 250-259. 10.1016/j.compind.2009.09.008
57. Vilko, J. P. P., and, J. M. Hallikas. 2012. " Risk Assessment in Multimodal Supply Chains." International Journal of Production Economics 140 (2): 586-595. 10.1016/j.ijpe.2011.09.010
58. Weber, C. A., J. Current, and, A. Desai. 2000. " An Optimization Approach to Determining the Number of Vendors to Employ." Supply Chain Management: An International Journal 5 (2): 90-98. 10.1108/13598540010320009
59. Wu, D., and, D. L. Olson. 2008. " Supply Chain Risk, Simulation, and Vendor Selection." International Journal of Production Economics 114 (2): 646-655. 10.1016/j.ijpe.2008.02.013
60. Wu, T., J. Blackhurst, and, V. Chidambaram. 2006. " A Model for Inbound Supply Risk Analysis." Computers in Industry 57: 350-365. 10.1016/j.compind.2005.11.001
61. Zsidisin, G. A. 2003. " Managerial Perceptions of Supply Risk." The Journal of Supply Chain Management 39 (1): 14-26. 10.1111/jscm.2003.39.issue-1
62. Zsidisin, G. A., and, L. M. Ellram. 2003. " An Agency Theory Investigation of Supply Risk Management." The Journal of Supply Chain Management 39: 15-27. 10.1111/jscm.2003.39.issue-3
63. Zsidisin, G. A., and, M. F. Smith. 2005. " Managing Supply Risk with Early Supplier Involvement: A Case Study and Research Propositions." The Journal of Supply Chain Management 41 (4): 44-57. 10.1111/jscm.2005.41.issue-4
64. Zsidisin, G. A., A. Panelli, and, R. Upton. 2000. " Purchasing Organization Involvement in Risk Assessments, Contingency Plans, and Risk Management: An Exploratory Study." Supply Chain Management an International Journal 5 (4): 187-198
65. Zsidisin, G. A., L. M. Ellram, J. R. Carter, and, J. L. Cavinato. 2004. " An Analysis of Supply Risk Assessment Techniques." International Journal of Physical Distribution & Logistics Management 34 (5): 397-413