Selecting the Right Supply Chain Based on Risks

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose: – The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs).
Design/methodology/approach: – This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break‐even points in dependence of p and i.
Findings: – This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low.
Research limitations/implications: – This research extends existing models for selecting the appropriate supply chain strategy.
Practical implications: – Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks.
Originality/value: – To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.
Purpose: – The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs).
Design/methodology/approach: – This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break‐even points in dependence of p and i.
Findings: – This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low.
Research limitations/implications: – This research extends existing models for selecting the appropriate supply chain strategy.
Practical implications: – Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks.
Originality/value: – To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.
LanguageEnglish
JournalJournal of Manufacturing Technology Management
Volume24
Issue number5
Pages652-668
ISSN1741-038X
DOIs
StatePublished - 2013
Externally publishedYes

Keywords

    Cite this

    @article{640429c544794d16a0f50e933199c8ff,
    title = "Selecting the Right Supply Chain Based on Risks",
    abstract = "Purpose: – The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs).Design/methodology/approach: – This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break‐even points in dependence of p and i.Findings: – This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low.Research limitations/implications: – This research extends existing models for selecting the appropriate supply chain strategy.Practical implications: – Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks.Originality/value: – To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.",
    keywords = "Supply chain management, Strategy, Risk management, Agility, Robustness, Resilience",
    author = "Andreas Wieland",
    year = "2013",
    doi = "10.1108/17410381311327954",
    language = "English",
    volume = "24",
    pages = "652--668",
    journal = "Journal of Manufacturing Technology Management",
    issn = "1741-038X",
    publisher = "JAI Press",
    number = "5",

    }

    Selecting the Right Supply Chain Based on Risks. / Wieland, Andreas.

    In: Journal of Manufacturing Technology Management, Vol. 24, No. 5, 2013, p. 652-668.

    Research output: Contribution to journalJournal articleResearchpeer-review

    TY - JOUR

    T1 - Selecting the Right Supply Chain Based on Risks

    AU - Wieland,Andreas

    PY - 2013

    Y1 - 2013

    N2 - Purpose: – The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs).Design/methodology/approach: – This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break‐even points in dependence of p and i.Findings: – This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low.Research limitations/implications: – This research extends existing models for selecting the appropriate supply chain strategy.Practical implications: – Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks.Originality/value: – To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.

    AB - Purpose: – The purpose of this paper is to propose a model that enables a company to select the supply chain strategy based on risk probability p (measure of how likely/often a detrimental event occurs) and risk impact i (expression of the significance of a loss when that event occurs).Design/methodology/approach: – This paper discusses four supply chain strategies: agility, robustness, resilience and rigidity. Mathematical models are used for the strategies' cost functions, which reveal optimal solutions and break‐even points in dependence of p and i.Findings: – This paper proposes that resilience is appropriate in the case of high supply chain risk probability and impact, and rigidity if both values are low. When only risk impact is low, robustness is optimal, whereas agility is optimal when only risk probability is low.Research limitations/implications: – This research extends existing models for selecting the appropriate supply chain strategy.Practical implications: – Knowledge of the interplay between the strategies' cost functions and risk probability and risk impact is vital for companies. This may encourage managers to become more familiar with their strategy costs and supply chain risks.Originality/value: – To the author's knowledge, no corresponding model exists so far that links risk impact and risk probability to the four supply chain strategies.

    KW - Supply chain management

    KW - Strategy

    KW - Risk management

    KW - Agility

    KW - Robustness

    KW - Resilience

    U2 - 10.1108/17410381311327954

    DO - 10.1108/17410381311327954

    M3 - Journal article

    VL - 24

    SP - 652

    EP - 668

    JO - Journal of Manufacturing Technology Management

    T2 - Journal of Manufacturing Technology Management

    JF - Journal of Manufacturing Technology Management

    SN - 1741-038X

    IS - 5

    ER -