ABSTRACT
Chapter 8 presents important problems in managing supply chain disruptions. During globalization, most companies sought their supplier base around the world, which reduced their supply chain costs. However, the Covid-19 pandemic proved that overemphasis on costs could make the supply chains susceptible to the risk of disruptions.
In this chapter, we present models and methods to classify and prioritize supply chain risks, quantify their impacts and develop risk mitigation strategies, both at the strategic and tactical levels. We begin with classification of supply chain risks through risk mapping and describe a risk assessment procedure for determining the disruption risk scores of supply chain facilities (suppliers, manufacturing plants, and DCs) and transportation links in a supply chain network. Based on the risk assessment, we present multiple criteria optimization models for designing and operating a global supply chain network. The models are illustrated with real-world examples. Best practices in supply chain risk management in industries are also presented.
