Disruption and Rerouting in Supply Chain Networks

• 成果类型: Article
• 署名作者: Birge, John R.; Capponi, Agostino; Chen, Peng-Chu
• 署名单位: University of Chicago; Columbia University; University of Hong Kong
• 刊物名称: OPERATIONS RESEARCH
• ISSN/ISSBN: 0030-364X
• DOI: 10.1287/opre.2022.2409
• 发表日期: 2023
• 页码: 750-767
• 关键词: systemic risk; capacity; diversification; decisions; CONTRACTS

摘要

We study systemic risk in a supply chain network where firms are connected through purchase orders. Firms can be hit by cost or demand shocks, which can cause defaults. These shocks propagate through the supply chain network via input-output linkages between buyers and suppliers. Firms endogenously take contingency plans to mitigate the impact generated from disruptions. We show that, as long as firms have large initial equity buffers, network fragility is low if both buyer diversification and supplier diversification are low. We find that a single-sourcing strategy is beneficial for a firm only if the default probability of the firm's supplier is low. Otherwise, a multiple-sourcing strategy is ex post more cost effective for a firm.