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Robust supply chain strategies for recovering from unanticipated disasters

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  • Chen, Li-Ming
  • Liu, Yan Emma
  • Yang, Shu-Jung Sunny

Abstract

Recovering from unanticipated disasters is critical in today’s global market. This paper examines the effectiveness of popular recovery strategies used to address unpredictable disasters that derail supply chains. We create a formal model to portray dynamic operational performance among supply chain firms facing disruptions caused by natural and man-made disasters. Our analysis shows that a supply chain recovers best if member firms adopt a radical, rapid, costly recovery strategy that immediately resolves the disruption. This observation is robust to various resource consumption requirements. We apply our methodology in the case of Taiwan’s 2011 food contamination scandal and provide managerial insights.

Suggested Citation

  • Chen, Li-Ming & Liu, Yan Emma & Yang, Shu-Jung Sunny, 2015. "Robust supply chain strategies for recovering from unanticipated disasters," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 77(C), pages 198-214.
    • Handle: RePEc:eee:transe:v:77:y:2015:i:c:p:198-214
    DOI: 10.1016/j.tre.2015.02.015
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    2. Paul, Sanjoy Kumar & Chowdhury, Priyabrata & Moktadir, Md. Abdul & Lau, Kwok Hung, 2021. "Supply chain recovery challenges in the wake of COVID-19 pandemic," Journal of Business Research, Elsevier, vol. 136(C), pages 316-329.
    3. Daniel Seaberg & Laura Devine & Jun Zhuang, 2017. "A review of game theory applications in natural disaster management research," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 89(3), pages 1461-1483, December.
    4. Sanjoy Kumar Paul & Sobhan Asian & Mark Goh & S. Ali Torabi, 2019. "Managing sudden transportation disruptions in supply chains under delivery delay and quantity loss," Annals of Operations Research, Springer, vol. 273(1), pages 783-814, February.
    5. R. Rajesh & Chandrasekharan Rajendran, 2019. "Grey- and rough-set-based seasonal disaster predictions: an analysis of flood data in India," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 97(1), pages 395-435, May.
    6. Abhishek Behl & Pankaj Dutta, 2019. "Humanitarian supply chain management: a thematic literature review and future directions of research," Annals of Operations Research, Springer, vol. 283(1), pages 1001-1044, December.
    7. Wang, Jiepeng & Zhou, Hong & Zhao, Yujie, 2022. "Behavior evolution of supply chain networks under disruption risk — From aspects of time dynamic and spatial feature," Chaos, Solitons & Fractals, Elsevier, vol. 158(C).
    8. Jihai Zhang & Zhile Wang & Fan Ren, 2019. "Optimization of humanitarian relief supply chain reliability: a case study of the Ya’an earthquake," Annals of Operations Research, Springer, vol. 283(1), pages 1551-1572, December.
    9. Singh, Nitya P. & Hong, Paul C., 2020. "Impact of strategic and operational risk management practices on firm performance: An empirical investigation," European Management Journal, Elsevier, vol. 38(5), pages 723-735.
    10. Kundu, Tanmoy & Sheu, Jiuh-Biing & Kuo, Hsin-Tsz, 2022. "Emergency logistics management—Review and propositions for future research," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    11. Goldbeck, Nils & Angeloudis, Panagiotis & Ochieng, Washington, 2020. "Optimal supply chain resilience with consideration of failure propagation and repair logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    12. Chen, Li-Ming & Chang, Wei-Lun, 2021. "Supply- and cyber-related disruptions in cloud supply chain firms: Determining the best recovery speeds," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).

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