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Correlation between strategic and operational risk mitigation strategies in supply networks

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  • Rezapour, Shabnam
  • Srinivasan, Ramakrishnan
  • Tew, Jeffrey
  • Allen, Janet K.
  • Mistree, Farrokh

Abstract

A supply network's performance is affected by two types of risk: 1) risk of disruptions that distort the supply network's topology by inactivating certain production facilities or transportation lanes; and 2) risk of variations in a facility's performance that reduce the efficiency of the supply network's flow planning for fulfilling demands. In this paper, we demonstrate that strategic and operational risk mitigation strategies, which neutralize the impacts of disruptions and variations, respectively, are correlated. We consider “Robustness” and “Resilience” at a strategic level to mitigate disruptions and “Reliability” at an operational level to mitigate variations.

Suggested Citation

  • Rezapour, Shabnam & Srinivasan, Ramakrishnan & Tew, Jeffrey & Allen, Janet K. & Mistree, Farrokh, 2018. "Correlation between strategic and operational risk mitigation strategies in supply networks," International Journal of Production Economics, Elsevier, vol. 201(C), pages 225-248.
    • Handle: RePEc:eee:proeco:v:201:y:2018:i:c:p:225-248
    DOI: 10.1016/j.ijpe.2018.04.014
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