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Research on the Manufacturer’s Strategies under Different Supply Interruption Risk Based on Supply Chain Resilience

Author

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  • Guojun Ji

    (School of Management, Xiamen University, Xiamen 361005, China)

  • Wen Hong

    (School of Management, Xiamen University, Xiamen 361005, China)

Abstract

In order to study the selection of coping strategies for the manufacturer facing different supply interruption risks, this paper constructs a supply chain consisting of one manufacturer and one supplier and uses no-taking coping strategies as the benchmark model to analyze the resilience of supply chain formed by the manufacturer’s adoption of penalty mechanism, emergency supplier mechanism, and strategic investment mechanism. The research shows that in the face of various levels of supply interruption risk, the manufacturer adopting a strategic investment mechanism will achieve high resilience, enabling the manufacturer and supplier to achieve mutual benefit and win-win results. In some cases of high interruption risk, the manufacturer adopting an emergency supplier mechanism can achieve higher chain resilience compared with not taking emergency measures, but its ability to improve supply chain resilience is weaker than that of a strategic investment mechanism. The penalty mechanism is applicable to situations where some interruption risk is characterized by low risk, and in such cases, both the penalty mechanism and the strategic investment mechanism can enhance the resilience of the supply chain.

Suggested Citation

  • Guojun Ji & Wen Hong, 2024. "Research on the Manufacturer’s Strategies under Different Supply Interruption Risk Based on Supply Chain Resilience," Sustainability, MDPI, vol. 16(2), pages 1-25, January.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:2:p:874-:d:1322616
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    References listed on IDEAS

    as
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    2. Li, Yongjian & Zhen, Xueping & Qi, Xiangtong & Cai, Gangshu (George), 2016. "Penalty and financial assistance in a supply chain with supply disruption," Omega, Elsevier, vol. 61(C), pages 167-181.
    3. Sammi Yu Tang & Panos Kouvelis, 2011. "Supplier Diversification Strategies in the Presence of Yield Uncertainty and Buyer Competition," Manufacturing & Service Operations Management, INFORMS, vol. 13(4), pages 439-451, October.
    4. Wang, Weijun & Han, Yicen & Wang, Meng & He, Yan, 2023. "Research on fair residential critical peak price: Based on a price penalty mechanism for high-electricity consumers," Applied Energy, Elsevier, vol. 351(C).
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