Title: A comprehensive contingency management framework for supply chain disruption risk management

Authors: Yibin Zhang; Jing Long; Chunming Shi

Addresses: School of Business Administration, Shanghai Lixin University of Commerce, Shanghai 201620, China ' Antai College of Economics and Management, Shanghai Jiaotong University, Shanghai 200052, China ' School of Business and Economics, Wilfrid Laurier University, Waterloo, Ontario, Canada

Abstract: With globalisation and the advancement of information and communication technology, supply chain network structure has become more and more complicated with operational uncertainties and disruptions increasingly exacerbated. In this paper, we propose a comprehensive emergency management framework to manage supply chain disruption risks. Our framework integrates risk identification, risk assessment, and a combination of two contingency strategies. These two strategies are robust inventory control and virtual dual sourcing which can effectively mitigate supply chain disruptions. We then present a case study where Delphi Co. managed the disruptions in its supply chains during the 2008 Olympic Games in Beijing, China. Through this case study, we show the validity of our comprehensive emergency management framework. Finally, our framework can improve supply chain sustainability. For example, its strategy of virtual dual sourcing can keep a supply chain sufficiently lean while minimising the effect of supplier disruption.

Keywords: comprehensive contingency management; inventory control; virtual dual-sourcing strategy; supply chain disruption; supply chain management; SCM; disruption risks; risk management; emergency management; risk identification; risk assessment; 2008 Olympic Games; Beijing Olympics; case study; sustainable supply chains; sustainability; lean supply chains; supplier disruption.

DOI: 10.1504/IJAL.2015.074315

International Journal of Automation and Logistics, 2015 Vol.1 No.4, pp.343 - 369

Received: 30 Dec 2014
Accepted: 31 Jul 2015

Published online: 22 Jan 2016 *

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