Automotive Engineering Commons^™

Modeling A Severe Supply Chain Disruption And Post-Disaster Decision Making With Application To The Japanese Earthquake And Tsunami, Cameron A. Mackenzie, Kash Barker, Joost R. Santos

Cameron A. MacKenzie

Modern supply chains are increasingly vulnerable to disruptions, and a disruption in one part of the world can cause supply difficulties for companies around the globe. This article develops a model of severe supply chain disruptions in which several suppliers suffer from disabled production facilities and firms that purchase goods from those suppliers may consequently suffer a supply shortage. Suppliers and firms can choose disruption management strategies to maintain operations. A supplier with a disabled facility may choose to move production to an alternate facility, and a firm encountering a supply shortage may be able to use inventory or buy …