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.
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.
- 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.
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.
- Keeping a share of volume flowing to the second source continuously
Verification¶
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