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.
Original languageEnglish
JournalJournal of Manufacturing Technology Management
Volume24
Issue number5
Pages (from-to)652-668
ISSN1741-038X
DOIs
Publication statusPublished - 2013
Externally publishedYes

Cite this

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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

JF - Journal of Manufacturing Technology Management

SN - 1741-038X

IS - 5

ER -