In a 2008 survey of 138 companies, 58% reported that they suffered financial losses within the last year due to a supply disruption. This article emphasizes the challenges and opportunities in supply risk management arising from the decentralized nature of supply chains and highlight how supply...

We study a manufacturer that faces a supplier privileged with private information about supply disruptions. We investigate how risk-management strategies of the manufacturer change, and examine whether risk-management tools are more, or less, valuable, in the presence of such asymmetric...