ABSTRACT
In August 2015, a massive explosion in a chemical warehouse in the Chinese port of Tianjin killed 173 people and destroyed new automotive vehicles stored at the port, other stored goods, warehouses, nearby buildings, and a factory. The economic damage as a result of this incident was estimated to be approximately $1.2 billion. 1 Besides this, manufacturers like Toyota, John Deere, and GlaxoSmithKline were forced to suspend their operations near the port. 2 In addition, the explosion caused severe disruptions to shipments from the port of Tianjin. These are examples of supply chain disruptions which have the potential to have adverse impact on the businesses of firms. What strategies do firms adopt to minimize the effect of such disruptions?
