Supply chain disruption

Prevent Identify hazardous materials that will be prohibited from transit Potential impacts to critical customers or supply chain disruption if material is no longer provided... 

Vlnod R. Singhal, "The Effect of Supply Chain Disruptions on Long-term Shareholder Value, Profitability and Share Price Volatility," Ph.D. dissertation, Georgia Institute of Technology, Atlanta, GA, 2005. 

Market turbulence has increased. As a result, in 2011, 85 percent of companies experienced a major supply chain disruption. To drive resiliency and to improve supply chain reliability, companies must improve demand and supply sensing and drive dynamic decision making. 

Ninety percent of the world s data was generated in the last two years, and 80 percent of that data is nnstructured—presentations, e-mails, audio files, and video files—and will not fit neatly into transactional systems. The use of unstructured data for early market sensing could have prevented 60 percent of the major supply chain disruptions outlined in Chapter 1. In Kgure 6.10, we share an overview of the changes with big data supply chains. 

Hendricks, K.B., Singhal, V.R. (2005). An empirical analysis of the effect of supply chain disruptions on long-run stock price performance and equity risk of the firm. Production and Operations Management, 14(X), 35-52. 

Management of the integrity of the supply chain network by mitigating supply chain disruptions at all levels... 

Moreover, failure to excel in supply chain management can negatively affect a company s stock price. Hendricks and Singhal (2005) found this to be true in a study of 885 supply chain disruptions reported by publicly traded companies during 1989-2000. The list of companies included small, medium, and large companies with respect to market capitalization and covered both manufacturing and IT industries. Hendricks and Singhal... 

With fewer warehouses, fhe risk of supply chain disruption will increase. 

According to Crisis Management International, companies that had prolonged supply chain disruptions of 10 days or more had the following impacts (Mahoney, 2004) ... 

According to a recent survey of 560 companies from 62 countries by Zurich Financial services and U.K. Business Continuity Institute, 85% said that they had suffered at least one disruption to their supply chains during 2011 (Veysey, 2011). Listed next, in order, are the major causes of the supply chain disruptions ... 

It is interesting to note where the supply chain disruptions occurred ... 

In terms of costs, the cost of a single supply chain disruption for most companies (83%) was less than 1.4 million but, for 14% of the companies surveyed it was between 1.4 million and 14 million. About 1% reported costs of more than 100 million ... 

By monitoring the performance of the critical suppliers in the six key areas, J J has built a successful risk management program to minimize supply chain disruptions. 

Following Yang (2006), we classify risks, natural or man-made, that can cause supply chain disruptions into two types for the purpose of quantification ... 

VaR type risks are rare events that can cause supply chain disruptions due to man-made or natural disasters. We discussed quantitative models for VaR type risks, using EVT in Section 7.9. In this section, we will present quantitative models for MtT type risks. 

Snyder and Shen (2006b) transformed their Snyder and Shen (2006a) paper into an executive summary emphasizing most significant parts of their work. Tang (2006) presented an extensive literature survey on risk management in supply chains, including manmade and natural disasters. Blackhurst et al. (2005) conducted an empirical study within a number of different industries to depict the manner in which supply chain disruption is understood and... 

Inadequate coverage of responses to supply chain disruptions... 

Rice and Caniato, (2003a) Report Supply risk, transportation risk, facilities risk, communication risk, human resources risk Reviews and discusses risks associated with supply chains and concentrates on supply chain disruptions due to terrorist attacks. Proposes a framework for risk assessment... 

Blackhurst, J., C. W. Craighead, D. Elkins, and R. B. Handfield. 2005. An empirically derived agenda of critical research issues for managing supply chain disruptions. International Journal of Production Research. 43(19) 4067-4081. 

Tomlin, B. 2006. On the value of mitigation and contingency strategies for managing supply chain disruption risks. Management Science. 52(5) 639-657. 

Veysey, S. 2011. Majority of companies suffered supply chain disruptions in 2011 Survey. Business Insurance. Accessed November 2,2011, www.businessinsurance.com... 

Xiao, T. and G. Yu. 2006. Supply chain disruption management and evolutionarily stable strategies of retailers in the quantity-setting duopoly situation with homogeneous goods. European Journal of Operational Research. 173(2) 648-668. 

Mackenzie CA, Barker K, Santos JR (2014) Modeling a severe supply chain disruption and postdisaster decision making with application to the Japanese earthquake and Tsunami HE transactions. Inst Ind Eng 46(12) 1243-1260... 

Network design in supply chains deals with the selection of the best location for the facilities in the supply chain network, numbers and capacities of facilities, and optimal product flows through the selected set of facilities (Melo et al. 2009 Subramanian and Ravindran 2014). Due to increased globalization of the firms operations, supply chains have become more vulnerable to disruptions (Kungwalsong 2013 Subramanian and Ravindran 2014). Thus, supply chain disruption has become an important consideration while designing a supply chain network. 

In terms of quantitative approach, some of the supply chain design sffidies have included the topic of supply chain disruption into consideration in order to enhance both supply chain profit and supply chain resilience. Falasca et al. (2008) have extended the supply chain design characteristics concept in Craighead et al. (2007) and proposed a quantitative measure for those characteristics. For instance, supply chain density can be measured as the number of nodes divided by the average... 

Craighead CW, Blackhurst J, Rungtusanatham MJ, Handheld RB (2007) The severity of supply chain disruptions design characteristics and mitigation capabilities. Decis Sci 38(1) 131-156 Falasca M, Zobel CW, Cook D (2008) A decision support framework to assess supply chain resilience. In Proceedings of the 5th international ISCRAM conference, Washington, DC, USA, pp 596-605... 

Schmidt W, Raman A (2012) When supply-chain disruptions matter. Harvard Business School (working paper)... 

The integrated nature of many major hazard businesses - including the potential for supply chain disruption ... 

Again, if the design decision involves unreliable supply sources this could potentially increase the chance of supply chain disruption. 

Tang, C. (2006). Robust strategies for mitigating supply chain disruptions. International Journal of Logistics Research and Applications, 9, 33 5. 

---