ABSTRACT
In this chapter, two different perspectives of design and management of value chains are discussed: risk optimization for efficiency and why it is not sufficient for designing and managing complex value-chain networks; and a resilience-based approach as an alternative for sustainability. Traditional risk management starts from the premise that the hazards are known, identifiable, and quantifiable. External forcing of the system, from multiple sources, can be viewed as a composite of several stochastic processes, each with a characteristic range of amplitudes at various frequencies. In the modern business world, most products and services require frequent alteration to meet rapidly changing consumer preferences and external constraints such as regulations and resource prices. As efficiency-driven strategies often degrade the features that are essential to resilience, a value chain should be designed and operated as a complex adaptive network which is able to cope with low-probability and high-consequence events.
