City Research Online

Using inventory to mitigate the Ripple effect

Lucker, F. ORCID: 0000-0003-4930-9773 (2019). Using inventory to mitigate the Ripple effect. IFAC PAPERSONLINE, 52(13), pp. 1272-1276. doi: 10.1016/j.ifacol.2019.11.373

Abstract

A single disruption at a single location within a supply chain may effect many other locations of a the supply chain through the Ripple effect (Ivanov et al., 2014). In this article we focus on the role of inventory to mitigate the Ripple effect. Our main finding states that operational decisions (such as safety inventory level or service level) are highly interrelated with decisions that mitigate the Ripple effect (such as a high Resilience of the supply chain). Specifically, we find: 1) An increase in demand volatility may lead a firm to invest more in operational safety stock as well as in dedicated Risk Mitigation Inventory. 2) A high service level and high resilience of a supply chain can be conflicting objectives.

Publication Type: Article
Publisher Keywords: Supply Chain Management; Risk Management; Modeling
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
Departments: Business School > Management
Date Deposited: 16 Jan 2020 11:03
URI: https://openaccess.city.ac.uk/id/eprint/23467
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