Robust strategies for mitigating supply chain disruptions

TLDR

Supply chains often break down and recover slowly after major disruptions, yet some remain functional and continue to satisfy customers before and after such events, largely due to cost‑effective and time‑efficient strategies. The paper presents certain “robust” strategies that possess two key properties. These strategies manage inherent fluctuations efficiently regardless of disruptions and increase resilience when disruptions occur. Although implementing these strategies incurs costs, they offer additional selling points for acquiring and retaining apprehensive customers before and after a major disruption.

Abstract

When major disruptions occur, many supply chains tend to break down and take a long time to recover. However, not only can some supply chains continue to function smoothly, they also continue to satisfy their customers before and after a major disruption. Some key differentiators of these supply chains are cost-effective and time-efficient strategies. In this paper, certain "robust" strategies are presented that possess two properties. First, these strategies will enable a supply chain to manage the inherent fluctuations efficiently regardless of the occurrence of major disruptions. Second, these strategies will make a supply chain become more resilient in the face of major disruptions. While there are costs for implementing these strategies, they provide additional selling points for acquiring and retaining apprehensive customers before and after a major disruption.