Supply Chain Risk Mitigation: Strategies, Methods and Applications

Preface
Contents
Part I: Review on Supply Chain Risk Management
Risks in Supply Chain Management
1 Introduction
2 Supply Chain Risk Management
3 SCRM Concept and Definitions
4 Why Risk Management in Supply Chains
5 Risks in Supply Chain Integration
5.1 Organizational and Strategy Implementation Risk
5.2 Technology and Relational Risk
6 Supply Chain Risk Characteristics
6.1 Financial Risk Objective
6.2 Disruptive Risk
6.3 Supply Chain Vulnerability
6.4 Risk Drivers and Mitigation Strategies
7 Managerial and Theoretical Implications
8 Conclusions
Appendix: Some Definitions of Supply Chain Risk, Uncertainty, and Vulnerability
References
Supply Chain Risk Management: An Enterprise View and a Survey of Methods
1 Introduction
2 Supply Chain Risk Management: An Overview
3 Approaches to Identify, Assess, Manage, and Monitor Supply Chain Risks
3.1 Supply Chain Risk Identification
3.2 Supply Chain Risk Assessment
3.2.1 Supply Chain Risk Mapping and Prioritization
3.2.2 Supplier Risk Assessments
3.3 Supply Chain Risk Management
3.3.1 Industry Constraints and Supply Chain Risk Mitigation
3.3.2 Supply Network Complexity and Supply Chain Risk Mitigation
3.4 Supply Chain Risk Monitoring
3.4.1 Technologies for Supply Chain Risk Monitoring
4 Behavioral Influences in Supply Chain Risk Management
5 The Governance Structure of Supply Chain Risk Management: Where Does Risk Responsibility Lie?
6 Supply Chain Risk Management in the Post-COVID-19 Era
7 Conclusions
References
Part II: Supply Chain Risk Strategies and Developments
Developing a Supply Chain Stress Test
1 Motivation
2 Literature Review
2.1 Finance and Banking Stress Testing
2.2 Supply Chain Risk Management
2.3 Predictive Global Sensitivity Analysis
3 Model Development
3.1 Model Description
3.1.1 Baseline Supply Chain Model
3.1.2 Baseline Model Assumptions
3.2 Notation
3.3 Formulation of the Baseline Model
4 Structural Equation Model
4.1 Dependent Variable
4.2 Independent Variables
4.3 Creating the Dataset for Regression
4.4 Structural Equation
5 Analysis
5.1 Model Validation
5.2 A Numerical Example
5.3 Discussion
5.4 Numerical Example Revisited
6 Conclusions
References
Retail Supply Chain Risk and Disruption: A Behavioral Agency Approach
1 Introduction
2 Supply Chain Risk and Disruption
3 Behavioral Agency Theory
4 Retail Supply Chain Disruption Through the Behavioral Agency Lens
5 Final Considerations
References
Mitigation of Supply Chain Vulnerability Through Collaborative Planning, Forecasting, and Replenishment (CPFR)
1 Introduction
2 Theoretical Background
2.1 Vulnerability, Risk Sources, Disruptions, and Risks of the SC
2.2 Supply Chain Resilience and Supply Chain Robustness
2.2.1 Supply Chain Resilience
2.2.2 Supply Chain Robustness
2.3 Vulnerability Measurement and Representation
2.4 SCV and Supply Chain Coordination (SCC)
2.4.1 SCV and SC Efficiency
2.5 SC Collaboration
3 Collaborative Planning, Forecasting, and Replenishment (CPFR)
4 Methodology and Results
4.1 Supply Chain Vulnerability (SCV) Framework
4.2 Analysis of CPFR´s Contribution to SCV Mitigation
5 Discussion of the Results
6 Conclusions and Recommendations for Future Research
References
The Boom and Bust of Medical Supplies During the COVID-19 Pandemic
1 Introduction
2 Theoretical Perspectives
2.1 Boom and Bust: The Bullwhip Effect
2.2 Psychological Factors Affecting Demand
2.3 Factors Affecting Supply
2.3.1 Inventory Models
2.3.2 Psychological Elements of Suppliers
2.3.3 Issues with Stock Management Structure
Decision Biases of Suppliers
Anchoring Bias
Demand Chasing
2.3.4 Other Supply Issues
2.4 Strategies to Respond to Supply-Demand Imbalance
3 The Case of Face Masks
3.1 Supplier Behavior
3.1.1 Demand Chasing
3.1.2 Demand Anchoring and Stock Adjustment
3.2 Buyer Behavior
3.3 Remedies
4 Conclusions
References
Part III: Supply Chain Sustainability and Resilience
Sustainability Practices for Enhancing Supply Chain Resilience
1 Introduction
2 Definition of Resilience
3 Categorizing Disruptions in the Supply Chain
4 Sustainability Practices for Dealing with Supply Chain Disruptions
4.1 Sustainability Practices Based on Firms´ Internal Planning, Organization, and Internal Stakeholders
4.2 Sustainability Practices Based on Relationships and Collaborations with External Stakeholders
4.3 Sustainability Practices Based on Business, Financial, and Regulatory Orientation
4.4 Sustainability Practices Based on an Environmental Orientation
5 Conclusions
References
A Theoretical Framework for Supply Chain Resilience Planning
1 Introduction
2 Background and Relevant Literature
2.1 Value Chain vs Supply Chain
2.2 Supply Chain Risks and Vulnerabilities
2.3 Supply Chain Resilience
2.4 Supply Chain Resilience and Disaster Management
3 Introducing Theoretical Frameworks
3.1 Mental Models and Triple-Loop Learning
3.2 Theory of Planned Behavior (TPB)
3.3 Additional Considerations
4 Proposed Theoretical Model: Informing Evolving Supply Chain Resilience
4.1 Disaster Preparedness Behavior in a Supply Chain Context
4.2 Approach
4.2.1 Definition of Components
4.2.2 Measures
4.2.3 SEM Model
5 Conclusions and Future Directions
References
Toward a Resilient Supply Chain
1 Introduction
2 People
3 Process
3.1 Risk Score
3.2 Risk Mapping
3.3 Risk Monitoring
3.4 Risk Prioritization and Mitigation
4 Technology
5 Conclusions
References
Integrated Optimization of Resilient Supply Chain Network Design and Operations Under Disruption Risks
1 Introduction
2 Literature Review
3 Problem Description
4 Mathematical Model
4.1 Sets and Indices
4.2 Parameters
4.3 Decision Variables
4.4 The Model
5 A Solution Method
5.1 Scenario Generation
5.2 The Solution Procedure
6 An Illustrative Example
6.1 Model Inputs
6.2 Numerical Results
6.3 Numerical Analysis
6.3.1 With vs. Without Disruption Risk Considerations
6.3.2 Conventional vs. Resilient Strategies
6.3.3 Changes in Alternative Sourcing and Strategic Inventory Costs
6.3.4 Changes in Demands
7 Conclusions
Appendix
References
Balancing Sustainability Risks and Low Cost in Global Sourcing
1 Introduction
2 Literature Review
2.1 Supplier Selection and Order Allocation
2.2 Sustainability-Related Supply Chain Risk Criteria
2.3 Green Supplier Selection and Order Allocation
2.4 Sustainable Supplier Selection and Order Allocation
3 Proposed Modeling Framework
3.1 Principal Component Analysis (PCA)
3.2 Min-Max Normalization
3.3 Bi-objective Model
3.3.1 Notation
3.3.2 Solution Approach
4 Illustrative Example
4.1 Evaluation Criteria
4.2 Sustainability Performance
4.3 Selection and Order Allocation
4.4 Results and Discussion
4.4.1 Optimization Results
4.4.2 Sensitivity Analysis
4.4.3 Model Modification
5 Conclusions
Appendices
Appendix 1: Sustainability-Related Supply Chain Risks
Appendix 2: Indices Criteria and Description
References
Part IV: Supply Chain Analysis and Risk Management Applications
A Bi-objective, Risk-Aversion Optimization Model and Its Application in a Biofuel Supply Chain
1 Introduction
2 Literature Review
3 Background on Risk Measures: The Definition of CVaR and Optimization Methods
4 Approaches for Incorporating Risk Metrics in Optimization
4.1 Two-Stage Stochastic Programming
4.2 The Optimization of CVaR
4.2.1 The Mean-CVaR Optimization Model
4.2.2 The Bi-objective Optimization Model
5 A Biofuel Supply Chain Network Design
5.1 Problem Description
5.2 Two-Stage Stochastic Program
5.3 Extension to a Risk-Averse Framework
5.4 The Bi-objective Problem
5.5 Computational Results
6 Concluding Remarks
References
Conceptualizing and Modeling Supply Chains in the Hazard Context
1 Introduction
2 Background
2.1 Manufacturing and Supply Chain
2.2 Infrastructure Components
2.3 Failure Modes and Associated Risks
3 Estimated Losses Due to Supply Chain Disruption
3.1 Data
3.2 Methods
3.3 Simulation
3.4 Results and Discussion
4 Summary and Additional Research
References
Developing Predictive Risk Analytic Processes in a Rescue Department
1 Introduction
2 Predictive Risk Analytics as an Approach
2.1 Predictive Risk Analytics in Supply Chains
2.2 Data Sources for Supply Chain Risk Management
3 Viewpoints into Predicting Safety Risks for Service Supply Development
3.1 Safety Risk Forecasting Path
3.2 Trends Influencing Safety Risk Management
3.3 Safety Risk Assessment of Individuals
4 Data Sources for Risk Prediction
4.1 Open Data, Exclusive Data, and Controlled Data
4.2 Data Sources to Risk Prediction in the Context of Rescue Services
5 Summary and Conclusions
References
A Manufacturing-Supply Chain Risk Under Tariffs Impact in a Local Market
1 Supply Chains: Management and Risk
2 Trade Tariffs in Supply Chains
3 System Studied
4 Total Product Cost
4.1 Raw Materials Procurement Cost
4.2 Product Labor Cost
5 The Selling Prices of Products
6 Tariffs Impacts
6.1 Tariffs Impact on Raw Materials Imported from Global Suppliers
6.1.1 A Tariff Rate of 25% on the Materials Purchase Price
6.1.2 A Tariff Rate of 50% on the Materials Purchase Price
6.1.3 A Tariff Rate of 75% on the Materials Purchase Price
6.2 Impact of Tariffs on Total Cost of Finished Product
6.3 Impact of Tariffs on Selling Price of Finished Product
6.4 Impact of Tariff on Demand for Finished Product
6.5 Profit Analysis Considering Tariffs Impact
6.6 Tariffs Impact on Manufacturing System Design (Number of Manufacturing Cells)
7 Conclusions
References