On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks

Tomlin, B. (2006). On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks. Management Science, 52(5), 639-657.

Type

Journal article

Intellectual base

Primary research

Year

2006

Volume

52

Issue

5

Pages

639-657

DOI

10.1287/mnsc.1060.0515

DOI registrant

Institute for Operations Research and the Management Sciences

Link

https://doi.org/10.1287/mnsc.1060.0515

Cited from

systems_cybernetics

Cited by

2 citations across 2 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Fallback Path
  • Supply and procurement. A qualified second source is held at a small standing allocation so that qualification stays live, tooling stays warm, and the relationship survives; that allocation is the visible premium paid for the option.

    This sourceModels dual sourcing — a standing allocation of volume to a reliable but costlier supplier — against contingent rerouting that requires the backup to hold ramp-up capacity, and prices the premium each arrangement carries.

    Supported in partVerified against the publisher's abstract

    Tomlin's abstract establishes that partial sourcing from a reliable but costlier supplier can be an optimal mitigation tactic, but says nothing about qualification staying live, tooling staying warm, or a priced premium.

    “We prove that in the special case in which the reliable supplier has no flexibility and the unreliable supplier has infinite capacity, a risk-neutral firm will pursue a single disruption-management strategy: mitigation by carrying inventory, mitigation by single-sourcing from the reliable supplier, or passive acceptance. ... Further, we show that a mixed mitigation strategy (partial sourcing from the reliable …”

    Read by an automated reader; not a human review. How support was checked

Mechanisms

• Fallback Supply or Service Contract
  • Keeping a share of volume flowing to the second source continuously

    This sourceModels genuine dual sourcing as allocating a share of order volume to each of a primary and backup supplier.

Verification

Does it exist? Confirmed. This work's DOI resolves to a registered record, which fixes its identity. That is all it fixes.

Does it back the claim? Read against the text for 1 of 2 citations: 1 supported in part. Each verdict is shown under its citation below, with what in the work backs the sentence.

Support is checked per citation rather than per work — the same source can be cited soundly in one article and wrongly in another. Per-citation recording began recently, so a citation with no recorded check is a gap in the record rather than evidence it went unchecked.

See how references were verified.

Registry ID ref:ca7f89285341 · see in the full table