Multi-Tiered Supply Chain Risk Management

Schorpp, Georg; Erhun, Feryal; Lee, Hau L.

doi:10.2139/ssrn.3117626

Cited by 6 publications

(7 citation statements)

References 27 publications

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“…2018, Schorpp et al. 2018). The advantage of these assumptions is to somewhat simplify the analysis and allow us to focus our insights on the location and quantity of RMI and reserve capacity when dealing with disruptions.…”

Section: Modeling Frameworkmentioning

confidence: 99%

“…These assumptions are quite common in the disruption risk management literature (compare, e.g., Ang et al 2017, Dong et al 2018, Schorpp et al 2018. The advantage of these assumptions is to somewhat simplify the analysis and allow us to focus our insights on the location and quantity of RMI and reserve capacity when dealing with disruptions.…”

Section: Modeling Frameworkmentioning

confidence: 99%

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Mitigating Product Shortage Due to Disruptions in Multi‐Stage Supply Chains

Lücker

Chopra

Seifert

2021

Production and Operations Management

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We focus on the optimal use of risk mitigation inventory (RMI) and reserve capacity to manage disruption risk in serial multi‐stage supply chains where product transformation occurs at each stage. We find that under reasonable conditions it is better to hold more RMI downstream than upstream even when the upstream holding costs are lower. We also find that it is often optimal to hold more reserve capacity downstream than upstream. While in one‐stage supply chains RMI and reserve capacity always behave as substitutes, it turns out that in multi‐stage serial supply chains the interplay between RMI and reserve capacity is more nuanced. We find that echelon RMI and reserve capacity at each stage are substitutes. In contrast, RMI at a stage complements reserve capacity at the adjacent downstream stage.

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Section: Modeling Frameworkmentioning

confidence: 99%

Section: Modeling Frameworkmentioning

confidence: 99%

Mitigating Product Shortage Due to Disruptions in Multi‐Stage Supply Chains

Lücker

Chopra

Seifert

2021

Production and Operations Management

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“…Interestingly, the authors proved that the optimal investment strategy depends only on the disruption probability of the firm's local neighborhoods (i.e., Tier 1 suppliers). Schorpp et al (2018) examined contract-design problems for a three-tier supply chain with unreliable suppliers. They proposed different incentive-compatible contracts for achieving coordination.…”

Section: Literature Reviewmentioning

confidence: 99%

Managing disruption risk in competing multitier supply chains

Rui

Guo

2022

Int Trans Operational Res

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This paper studies the sourcing problem of two competing manufacturers in two supply chains. Each supply chain consists of a Tier 0 manufacturer, a Tier 1 supplier, and a pair of Tier 2 suppliers with different disruption probabilities. The two manufacturers are engaged in Cournot competition. The two Tier 1 suppliers that serve different manufacturers may procure from different or the same Tier 2 suppliers. We investigate the impact of upstream supply chain structures on the manufacturers' performance by comparing two representative configurations: the paralleled supply chain configuration, which has no overlap in Tier 2 suppliers, and the overlapped supply chain configuration, which has the same Tier 2 suppliers. We derive the manufacturers' equilibrium sourcing strategies in the two configurations. When the more reliable Tier 2 supplier is quite reliable or the more unreliable Tier 2 supplier is very unreliable, both manufacturers offer a low wholesale price to induce their Tier 1 suppliers for single sourcing. When the more reliable Tier 2 supplier is not sufficiently reliable and the more unreliable Tier 2 supplier is not that unreliable, both manufacturers offer a high wholesale price to induce their Tier 1 suppliers for dual sourcing. There are also certain conditions under which one manufacturer chooses the high‐price sourcing strategy and the other one chooses the low‐price sourcing strategy. Besides, we demonstrate that competition decreases the manufacturers' incentives to induce dual sourcing. In a more competitive market, the manufacturers prefer less overlap in their upper suppliers. Finally, we conduct several extensions to show the robustness of our findings.

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“…Additionally, as global supply chains and related networks have become more diverse, networks face an increasingly complex series of issues and challenges. The many facets of supply chain issues have had attempts at being addressed and highlight the need to be resilient and ensure that all partners’ interests stay aligned in a collaborative network with risks managed intelligently; however, this is often very difficult (Schorpp et al , 2018). Existing research on methods of supplier selection has not sufficiently addressed the problem of quickly assessing several scenarios in a supply chain network.…”

Section: Levels Of Resiliencementioning

confidence: 99%

Challenges for organisational resilience

Burnard

Bhamra

2019

CRR

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Purpose -Organisational resilience presents complex challenges organisations must address in order to respond and recover from disruptive events. From an operations and strategic management perspective, this paper outlines these challenges and highlights the important perspectives within the growing literature of resilience. Design/methodology/approach -Based on a critique of relevant literature this Viewpoint paper identifies and discusses the emerging challenges in developing resilience at an organisational level. Findings -The outcome of this paper establishes a set of propositions to guide the development of organisational level resilience as well as outlining future research. Originality/value -The outlined propositions highlight the features of both active and passive resilience and identify key considerations for organisations. Through recognising these propositions organisations may be better placed to address the impacts of disruptive events.

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Multi-Tiered Supply Chain Risk Management

Cited by 6 publications

References 27 publications

Mitigating Product Shortage Due to Disruptions in Multi‐Stage Supply Chains

Mitigating Product Shortage Due to Disruptions in Multi‐Stage Supply Chains

Managing disruption risk in competing multitier supply chains

Challenges for organisational resilience

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