Literature review on disruption recovery in the supply chain

Ivanov, Dmitry; Dolgui, Alexandre; Sokolov, Boris; Іванова, Марина

doi:10.1080/00207543.2017.1330572

Cited by 547 publications

(363 citation statements)

References 124 publications

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“…Research indicates that resilient firms have mechanisms for dealing with disruptions, enabling such firms to reap superior performance outcomes (Wong et al, 2019;Yu et al, 2019). While research interest in resilience is growing (e.g., Pettit et al, 2019;Ivanov et al, 2017), knowledge of the operational resilience construct is limited in two important ways. First, besides the recognition that the resilience construct is not completely understood (Manhart et al, 2020;Pettit et al, 2019), previous research is limited to the study of the construct at supply chain network and firm levels.…”

Section: Introductionmentioning

confidence: 99%

Operational resilience, disruption, and efficiency: Conceptual and empirical analyses

Essuman

Boso

Annan

2020

International Journal of Production Economics

106

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A B S T R A C TThis research develops the notion of operational resilience and investigates its relationship with operational efficiency under differing conditions of operational disruption. Operational resilience is conceptualized as a multi-dimensional construct, consisting of two theoretically distinct components (i.e., disruption absorption and recoverability), which are argued to have unique effects on operational efficiency under varying operational disruption conditions. The study's hypotheses are empirically tested on primary data from a sample of 259 firms in a sub-Saharan African economy. Using structural equation modeling as an analytical tool, the study finds that both disruption absorption and recoverability have positive effects on operational efficiency. Additionally, the study finds that while the effect of disruption absorption on operational efficiency is stronger under conditions of high operational disruption, the effect of recoverability on operational efficiency is stronger under conditions of low operational disruption. A major implication of these findings is that the nature of operational resilience and the disruption circumstances under which it is deployed shape its efficiency value, thus advancing knowledge on the nuances associated with how and when operational resilience influences operational efficiency.

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Section: Introductionmentioning

confidence: 99%

Operational resilience, disruption, and efficiency: Conceptual and empirical analyses

Essuman

Boso

Annan

2020

International Journal of Production Economics

106

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“…For a recent review of literature on supply chain disruptions and recovery see Ivanov et al (2017). Research has investigated how to optimize supply chain coordination (Sawik 2014) with promising results, but a single disruption can propagate with devastating effects, and little is known about the propagation phenomenon from a systemic perspective (Ghadge et al 2011;Ivanov et al 2014a;2014b).…”

Section: Introductionmentioning

confidence: 99%

Supply chain disruption propagation: a systemic risk and normal accident theory perspective

Scheibe

Blackhurst

2017

International Journal of Production Research

303

162

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When a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case study approach to help understand what drives supply chain disruption propagation and to provide theoretical insights into this emerging area. For a more complete perspective, we study three interconnected tiers in seven unique supply chains. Each supply chain triad consists of (1) a focal firm (a manufacturer), (2) a supplier to the focal firm and (3) a customer of the focal firm allowing us to gain perspective from three levels in multiple supply chains. Three aggregate dimensions are defined which help explain the propagation of supply chain disruptions: the nature of the disruption, structure and dependence, and managerial decision-making. Within these dimensions, six themes are identified giving an increased level of granularity into disruption propagation: correlation of risk, compounding effects, cyclical linkages, counterparty risk, herding and misaligned incentives. Organisations should consider these themes and their interactions to effectively deal with supply chain disruptions. ABSTRACTWhen a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case study approach to help understand what drives supply chain disruption propagation and to provide theoretical insights into this emerging area. For a more complete perspective, we study three interconnected tiers in seven unique supply chains. Each supply chain triad consists of (1) a focal firm (a manufacturer), (2) a supplier to the focal firm and (3) a customer of the focal firm allowing us to gain perspective from three levels in multiple supply chains. Three aggregate dimensions are defined which help explain the propagation of supply chain disruptions: the nature of the disruption, structure and dependence, and managerial decision making. Within these dimensions, six themes are identified giving an increased level of granularity into disruption propagation: correlation of risk, compounding effects, cyclical linkages, counterparty risk, herding, and misaligned incentives. Organizations should consider these themes and their interactions to effectively deal with supply chain disruptions.

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“…First, we designed a model that radically reshapes the traditional newsvendor model. While cost and profit are always 42 J o u r n a l P r e -p r o o f objectives of concern, today's modern supply chains have led supply chain managers to redirect their attention to supply chain disruption, risk propagation, and severity (Craighead et al, 2007;Ivanov et al, 2017a;Hosseini et al, 2019b). As far as we are aware, this is the first major study to clarify and measure the construct of risk severity through the lens of risk propagation and the ripple effect.…”

Section: Resultsmentioning

confidence: 99%

“…The ripple effect is defined as the spread of disruption and the resulting impact on performance throughout a supply network (Ivanov, 2017). While it is similar to the bullwhip effect, the ripple effect is often characterized by low-frequency/high-impact events, a lasting impact on supply chain performance, as well as permanent and temporary structural changes to the network (Ivanov et al, 2017a). Put simply, the ripple effect is a propagation of disruption throughout a supply network.…”

Section: Introductionmentioning

confidence: 99%

The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation

Garvey

Carnovale

2020

International Journal of Production Economics

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How should managers take into account the propagation of supply chain disruptions and risks (i.e. the ripple effect) when they design their inventory policies? For over 60 years, various extensions and applications to the popular newsvendor model have been suggested, where cost/profit are often the focal objective. Accordingly, we propose a new version of the traditional single-period newsvendor model -the "Rippled Newsvendor" -with supply chain severity (i.e. risk propagation) as the primary objective while taking into account network structure. Our model considers exogenous and endogenous risk(s) of disruption while exploring the tension between under-supply and "wear-and-tear" (i.e system breakdown).To model the intricacies of this trade-off whilst minimizing the potential spread of risk, we leverage a Bayesian Network whereby the conditional probability distributions are functions of the inventory ordering decisions. We use a simulation study to understand the nature of our objective function as well as to gain insight into the potential optimal ordering policies of this new model. Furthermore, the simulation seeks to understand how the various factors in our system impact total risk severity, and if they do so in different ways. Our simulations indicate that local exogenous risk is of greater importance than non-local exogenous risk.Furthermore, we show that the type of risk, as well as the structural characteristics of the supply chain and inventory system, impact risk severity differently. As far as we are aware, this is the first framework to incorporate supply network structure, risk propagation, and inventory decision making.

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Literature review on disruption recovery in the supply chain

Cited by 547 publications

References 124 publications

Operational resilience, disruption, and efficiency: Conceptual and empirical analyses

Operational resilience, disruption, and efficiency: Conceptual and empirical analyses

Supply chain disruption propagation: a systemic risk and normal accident theory perspective

The rippled newsvendor: A new inventory framework for modeling supply chain risk severity in the presence of risk propagation

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