Supply Chain Disruption Management: Review of Issues and Research Directions

Supply Chain Risk Management (SCRM) is an increasingly popular subject of research which emphasizes the goals of achieving improved supply chain robustness through development of design and operational strategies. Disruption management is one aspect of SCRM which examines the ability of the supply chain to maintain a high level of performance under the effects of major disruptions. Specifically, disruptions refer to events characterized by a low likelihood of occurrence and a large impact. Because of their limited rate of occurrence, disruptions are associated with a high uncertainty with respect to their expected impact. Improved modeling of the disruption impact is one key issue in this field. Other issues include the design of methods for supply chain performance measurement, disruption monitoring and detection, evaluation of recovery strategies, and methods of optimal supply chain design. Design features to be considered include flexibility, redundancy, and operating efficiency. The relevant literature is presented in the context of these major issues and future directions suggested by researchers in the field are discussed.