 Modeling a severe supply chain disruption and post-disaster decision making with application to the Japanese earthquake and tsunamiCameron A. MacKenzie, Kash Barker and Joost R. Santos IISE Transactions, 2014, vol. 46, issue 12, 1243-1260 Abstract: Modern supply chains are increasingly vulnerable to disruptions, and a disruption in one part of the world can cause supply difficulties for companies around the globe. This article develops a model of severe supply chain disruptions in which several suppliers suffer from disabled production facilities and firms that purchase goods from those suppliers may consequently suffer a supply shortage. Suppliers and firms can choose disruption management strategies to maintain operations. A supplier with a disabled facility may choose to move production to an alternate facility, and a firm encountering a supply shortage may be able to use inventory or buy supplies from an alternate supplier. The supplier’s and firm’s optimal decisions are expressed in terms of model parameters such as the cost of each strategy, the chances of losing business, and the probability of facilities reopening. The model is applied to a simulation based on the 2011 Japanese earthquake and tsunami, which closed several facilities of key suppliers in the automobile industry and caused supply difficulties for both Japanese and U.S. automakers. Date: 2014 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:uiiexx:v:46:y:2014:i:12:p:1243-1260 Ordering information: This journal article can be ordered from DOI: 10.1080/0740817X.2013.876241 Access Statistics for this article IISE Transactions is currently edited by Jianjun Shi More articles in IISE Transactions from Taylor & Francis Journals |
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