ManMohan S. Sodhi

Managing Supply Chain Risk - International Series in Operations Research & Management Science ManMohan S. Sodhi 2012 edition

Marc Notes: Includes bibliographical references (p. 311-331); Includes detailed modelling-based approaches to mitigate supply chain risk, drawing on the supply chain literature. Presents broad mitigation approaches in practice to highlight concepts, drawing on industry examples and cases. -- Publisher's websiteBrief Description: "Includes detailed modelling-based approaches to mitigate supply chain risk, drawing on the supply chain literature. Presents broad mitigation approaches in practice to highlight concepts, drawing on industry examples and cases." -- Publisher's website. Jacket Description/Back: Supply Chain Risk Management is an issue that many companies face and yet few companies know how to deal with it in a systematic and pragmatic manner. While avoiding and reducing supply chain risks are certainly preferable, developing ways to restore and stabilize supply chain operations rapidly after a major disruption is critical for managing global supply chains. Sodhi and Tang present important concepts, frameworks, strategies, and analyses that are essential for managing supply chain risks. Not only does this book suggest some practical ways to work with different partners to manage the risks that are present in a global supply chain, it creates a framework that would enable practitioners to engage researchers to work on this important area. "Thomas A. Debrowski, Executive Vice President, Worldwide Operations, Mattel, Inc.""Table of Contents: Foreword -- Endorsements -- Acknowledgements -- Part I. Introduction-Identifying, Assessing, Mitigating and Responding to Supply Chain Risk -- 1. Supply Chain Risk Management -- 1.1. Introduction -- 1.2. This Book -- 1.3. The Supply Chain Management Context -- 1.4. The Need for Supply Chain Risk Management -- 1.5. Apprehension without Action -- 1.6. Robust Strategies for Supply Chain Management -- 1.7. Disciplinary Roots of Supply Chain Risk Management -- 2. Risk Identification -- 2.1. Introduction -- 2.2. A Conceptual View of Risk for Identification and Categorization -- 2.2.1. A Butterfly Depiction of Supply Chain Risk -- 2.2.2. Delays and Disruptions: Normal and Abnormal Risks -- 2.2.3. Local-and-Global Drivers and Local-and-Global Consequences -- 2.3. Risk Categorization Motivated by the Supply Chain Organization -- 2.3.1. Supply Risks -- 2.3.2. Process Risks -- 2.3.3. Demand Risks -- 2.3.4. Corporate-Level Risks -- 2.4. Summary -- 3. Risk Assessment -- 3.1. Introduction -- 3.2. What Risks to Assess -- 3.3. How to Assess Risks -- 3.4. Example of a Cross-Company Survey: What Risks and How to Assess -- 3.4.1. Our Sample -- 3.4.2. What Risks Were Assessed -- 3.4.3. How We Assessed These Risks -- 3.4.4. Discussion -- 3.5. Summary -- 4. Mitigating Risks -- 4.1. Introduction -- 4.2. Risk Mitigation Strategies -- 4.3. Building Reserves for Redundancy -- 4.4. Tailoring Risk Management for any Given Company -- 4.5. Conclusion -- 5. Response as a Mitigation Approach -- 5.1. Introduction -- 5.1.1. Examples of Disruptions and Their Impacts -- 5.1.2. Dealing with Disruptions -- 5.2. Tune-Based Risk Management -- 5.2.1. The 3-D Framework: Detect, Design, and Deploy -- 5.3. Response Time and Impact -- 5.3.1. Modeling Disruption Impact over Time -- 5.4. Time-Based Risk Management in Practice -- 5.5. Risk and Reward Considerations -- 5.6. Conclusion -- 6. How do Global Manufacturing Companies Mitigate Supply Chain Risks -- 6.1. Introduction -- 6.2. Literature Review -- 6.3. Motivation -- 6.4. Methodology -- 6.5. Samsung Electronics -- 6.6. Conclusions -- Part II. Mitigation Approaches and Applications -- 7. Strategic Approaches for Mitigating Supply Chain Risks -- 7.1. Introduction -- 7.2. Robust Supply Chain Strategies -- 7.3. Conclusion -- 8. Tactical Approaches for Mitigating Supply Chain Risks: Financial and Operational Hedging -- 8.1. Introduction -- 8.2. Different Types of Financial Risks -- 8.2.1. Risks Associated with Input Material Costs -- 8.2.2. Risks Associated with Labor Costs -- 8.2.3. Risks Associated with Foreign Currency Exchange -- 8.2.4. Risks Associated with Supplier Defaults -- 8.3. Financial Instruments for Managing Input Material Cost and Foreign Exchange Risks -- 8.4. Financial Instruments for Reducing Supplier Default Risks -- 8.5. Operational Planning for Managing Cost Risks and Supplier-Default Risks -- 8.5.1. Capability for In-Season Replenishment -- 8.5.2. Flexibility for Switching Sourcing Locations -- 8.6. Integrated Financial and Operational Hedging -- 8.7. Conclusions -- 9. Application-Scenario Planning for Mitigating Supply Chain Restructuring Risk at a PVC Manufacturer -- 9.1. Introduction -- 9.2. One Company's Story: Restructuring A Post-Acquisition Supply Chain -- 9.3. The Planning Spectrum -- 9.4. Planning Processes and Optimization -- 9.5. Use of Optimization for Strategic Supply-Chain Planning -- 9.6. The Need for a Combined Process -- 9.7. Scenarios and Scenario Planning -- 9.8. Middle Ground -- 9.9. Conclusion -- 10. Application-Mitigating Outsourcing-Related Risks -- 10.1. Introduction -- 10.2. Risk 1: Underestimating the Strategic Value of Procurement -- 10.3. Risk 2: Underestimating the Strategic Value of Outsourcing -- 10.4. Risk 3: Poor Understanding of Internal Capability and Cost Structure -- 10.5. Risk 4: Outsourcing the Wrong Thing -- 10.6. Risk 5: Underestimating the Importance of Incentive Alignment -- 10.7. Risk 6: Outsourcing Operations without Considering the Supply Chain -- 10.8. Risk 7: Outsourcing without the Right Contracts -- 10.9. Risk 8: Not Being Prepared for Supply Disruptions -- 10.10. Conclusion -- 11. Application: Mitigating New Product Development Risks-The Case of the Boeing 787 Dreamliner -- 11.1. Introduction -- 112. The 787 Dreamliner's Unconventional Supply Chain -- 11.3. The Dreamliner's Supply Chain Risks -- 11.4. What Boeing Did to Mitigate Risk -- 11.5. What Might Boeing Have Done Differently to Mitigate Risk -- 11.6. Conclusion -- 12. Application: Managing Product Recalls-the Case of Mattel, Inc. -- 12.1. Introduction -- 12.2. Underlying Causes of Mattel's Product Recalls -- 12.3. Mattel's Product Recall Management Process -- 12.3.1. Challenges Pertaining to Product Recalls -- 12.3.2. Opportunities Associated with Product Recalls -- 12.4. Conclusion -- Part III. Review of Quantitative Models for Managing Supply Chain Risk -- 13. Risk Models for Supply Chain Management -- 13.1. Introduction -- 13.2. Supply Management -- 13.2.1. Supply Network Design -- 13.2.2. Supplier Relationships -- 13.2.3. Supplier Selection Process -- 13.2.4. Supplier Order Allocation -- 13.2.5. Supply Contracts -- 13.2.6. Robust Supply Management Strategies -- 13.3. Demand Management -- 13.3.1. Shifting Demand Across Time -- 13.3.2. Shifting Demand Across Markets -- 13.3.3. Shifting Demand Across Products -- 13.3.4. Robust Demand Management Strategies -- 13.4. Product Management -- 13.4.1. Postponement -- 13.4.2. Process Sequencing -- 13.4.3. Robust Product Management Strategies -- 13.5. Information Management -- 13.5.1. Information Management Strategies for Managing Fashion Products -- 13.5.2. Information Management Strategies for Managing Functional Products -- 13.5.3. Robust Information Management Strategies -- 13.6. Managerial Attitudes -- 13.7. Conclusions -- 14. Modeling the Value of Flexibility -- 14.1. Introduction -- 14.2. Supply-Cost Risk and the Value of Flexibility via Multiple Suppliers -- 14.3. Supply-Commitment Risk: the Value of Flexibility via Flexible Supply Contracts -- 14.3.1. Uniformly Distributed Market Shocks -- 14.3.2. General Market Shocks -- 14.4. Process risk: the Value of Flexibility via Flexible Manufacturing -- 14.4.1. (Discrete) Uniformly Distributed Plant Capacity -- 14.4.2. Normally Distributed Plant Capacity -- 14.5. Demand Risk: the Value of Flexibility via Postponement -- 14.6. Demand Risk: the Value of Flexibility via Responsive Pricing -- 14.7. Conclusions -- 15. Stochastic Programming for Supply Chain Planning Under Demand Uncertainty -- 15.1. Introduction -- 15.2. Motivation -- 15.3. A Stochastic Program for Supply-Chain Planning -- 15.3.1. A Stochastic Program for Asset Liability Management -- 15.3.2. A Stochastic Program for Supply Chain Planning -- 15.3.3. Comparison of SCP Model with the ALM Model -- 15.3.4. Demand-Scenario Generation: An Example -- 15.3.5. Risk Measures Consideration -- 15.4. Modeling Choices -- 15.4.1. Representation of Uncertainty -- 15.4.2. Decision variables -- 15.4.3. Time Periods and the Decision Horizon -- 15.4.4. Objective function -- 15.4.5. Constraints -- 15.5. Solution-Technique Choices -- 15.5.1. Decomposition -- 15.5.2. Aggregation -- 15.5.3. Sampling Scenarios -- 15.6. Conclusion -- Part IV. Perspectives and Topics for Future Research -- 16. Researchers' Perspectives on Supply-Chain Risk Research -- 16.1. Introduction -- 16.2. Growing Interest in Supply Chain Risk -- 16.3. Motivation for This Study -- 16.4. Methodology -- 16.5. Step 1 Findings: Diversity in Scope and Research Tools -- 16.6. Step 2 Findings: A Closer Look at the Definition Gap -- 16.7. Step 3 Findings: Three Gaps -- 16.8. Addressing the Gaps -- 16.8.1. Closing the Definition Gap -- 16.8.2. Closing the Process Gap -- 16.8.3. Closing the Methodology Gap -- 16.9. Conclusion -- 17. Conclusion and Future Research -- 17.1. Introduction -- 17.2. Identifying and Assessing Supply Chain Risk -- 17.3. Mitigating and Responding to Supply Chain Risk -- 17.4. The Nature of the Organization -- 17.5. Managerial Impact -- 17.6. Research Methods -- 17.7. Final Thoughts -- References. Review Quotes: From the reviews: This humble, balanced, and structured book is a pleasure to read. The authors clearly explain both the outline and the concepts stated within that outline. They accompany each methodology by an illustration, a practical example, and a discussion. I would advise each supply chain manager and researcher to add this book to his (her) bookshelf. (Tessa Moller, Interfaces, Vol. 44 (1), January-February, 2014)"Publisher Marketing: This title summarises supply chain literature, offering approaches for mitigating supply chain risk and using industry examples and cases to highlight important concepts. It discusses ways to restore and stabilise supply chain operations after a major disruption.

Contributor Bio:  Sodhi, ManMohan S ManMohan S. Sodhi and Navdeep S. Sodhi wrote the seminal "Harvard Business Review "article that first revealed how great companies are using Six Sigma in pricing. Mohan is professor and head of Operations Management and Quantitative Methods at Cass Business School in London. He has a Ph. D. from the Anderson School of Management at UCLA with previous degrees in manufacturing and in industrial engineering. Before coming to Cass, he consulted full-time for ten years at senior levels with Sabre, Accenture, and Scient in a variety of industries including chemicals, consumer-packaged-goods, and airlines in the US and Europe. His managerial articles have appeared in the "Harvard Business Review," "MIT Sloan Management Review," "The Wall Street Journal," "Supply Chain Management Review," "Interfaces" and other journals. Navdeep is a pricing practitioner and thought leader with over eleven years of global pricing experience spanning different industries: airline, medical device, and manufacturing. He has an MBA from Georgetown University. He has applied Six Sigma and Lean methods to pricing in his work for industrial manufacturers. He is the recipient of the Award of Excellence from the Professional Pricing Society. His articles on pricing have appeared in the Harvard Business Review and the Journal of Professional Pricing.