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Identifying risks and mitigating disruptions in the automotive supply chain

Publication ,  Journal Article
Simchi-Levi, D; Schmidt, W; Wei, Y; Zhang, PY; Combs, K; Ge, Y; Gusikhin, O; Sanders, M; Zhang, D
Published in: Interfaces
September 1, 2015

Firms are exposed to a variety of low-probability, high-impact risks that can disrupt their operations and supply chains. These risks are difficult to predict and quantify; therefore, they are difficult to manage. As a result, managers may suboptimally deploy countermeasures, leaving their firms exposed to some risks, while wasting resources to mitigate other risks that would not cause significant damage. In a three-year research engagement with Ford Motor Company, we addressed this practical need by developing a novel risk-exposure model that assesses the impact of a disruption originating anywhere in a firm's supply chain. Our approach defers the need for a company to estimate the probability associated with any specific disruption risk until after it has learned the effect such a disruption will have on its operations. As a result, the company can make more informed decisions about where to focus its limited risk-management resources. We demonstrate how Ford applied this model to identify previously unrecognized risk exposures, evaluate predisruption risk-mitigation actions, and develop optimal postdisruption contingency plans, including circumstances in which the duration of the disruption is unknown.

Duke Scholars

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Published In

Interfaces

DOI

EISSN

1526-551X

ISSN

0092-2102

Publication Date

September 1, 2015

Volume

45

Issue

5

Start / End Page

375 / 390

Related Subject Headings

  • Operations Research
  • 4901 Applied mathematics
  • 3509 Transportation, logistics and supply chains
  • 1503 Business and Management
  • 0806 Information Systems
  • 0102 Applied Mathematics
 

Citation

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Simchi-Levi, D., Schmidt, W., Wei, Y., Zhang, P. Y., Combs, K., Ge, Y., … Zhang, D. (2015). Identifying risks and mitigating disruptions in the automotive supply chain. Interfaces, 45(5), 375–390. https://doi.org/10.1287/inte.2015.0804
Simchi-Levi, D., W. Schmidt, Y. Wei, P. Y. Zhang, K. Combs, Y. Ge, O. Gusikhin, M. Sanders, and D. Zhang. “Identifying risks and mitigating disruptions in the automotive supply chain.” Interfaces 45, no. 5 (September 1, 2015): 375–90. https://doi.org/10.1287/inte.2015.0804.
Simchi-Levi D, Schmidt W, Wei Y, Zhang PY, Combs K, Ge Y, et al. Identifying risks and mitigating disruptions in the automotive supply chain. Interfaces. 2015 Sep 1;45(5):375–90.
Simchi-Levi, D., et al. “Identifying risks and mitigating disruptions in the automotive supply chain.” Interfaces, vol. 45, no. 5, Sept. 2015, pp. 375–90. Scopus, doi:10.1287/inte.2015.0804.
Simchi-Levi D, Schmidt W, Wei Y, Zhang PY, Combs K, Ge Y, Gusikhin O, Sanders M, Zhang D. Identifying risks and mitigating disruptions in the automotive supply chain. Interfaces. 2015 Sep 1;45(5):375–390.

Published In

Interfaces

DOI

EISSN

1526-551X

ISSN

0092-2102

Publication Date

September 1, 2015

Volume

45

Issue

5

Start / End Page

375 / 390

Related Subject Headings

  • Operations Research
  • 4901 Applied mathematics
  • 3509 Transportation, logistics and supply chains
  • 1503 Business and Management
  • 0806 Information Systems
  • 0102 Applied Mathematics