Managing Disruption Risks in Supply Chains

Topics: Chemicals, Emergency Management, Supply Chain, Terrorism,

This document analyzes supply chain risks that arise as a result of “normal activities” such as natural disasters, labor strikes, terrorism, etc. It examines a data set of incidents in the US Chemical Industry from 1995 to 2000, in order to examine ways to cope with disruption risks. The authors ultimately find that managing two dimensions: 1. strategies to reduce the frequency or severity of risks, and 2. increasing supply chain capacity, are fundamental in guiding policy to manage supply chain disruption.

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