Supply chain risk management for critical commodities: A system dynamics model for the case of the rare earth elements

Michael L. Keilhacker and Stefan Minner

Resources, Conservation & Recycling, 2017, vol. 125, issue C, 349-362

Abstract: We investigate mitigation strategies that potentially reduce the supply chain risk caused by exogenous interventions for critical commodities. We apply a system dynamics approach to examine the individual company’s reaction in the rare earth elements (REEs) supply chain to China’s introduction of export restrictions over a three-stage supply chain for 11 REEs, 10 semi-finished goods (SFG), and 21 finished goods (FG) between 2004 and 2015. We analyze how FG and SFG substitution, secondary recycling, supply extension and research and development (R&D) affect dynamic variables such as the price level, supply and demand on each stage to determine the effectiveness of each strategy for mining companies, SFG and FG producers.

Keywords: Supply chain risk management; Critical commodities; System dynamics; Rare earth elements (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:recore:v:125:y:2017:i:c:p:349-362

DOI: 10.1016/j.resconrec.2017.05.004

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