Managing Supply Chain Risk	3
	Preface	6
	Foreword	8
	Endorsements	9
	Acknowledgements	11
	Contents	12
	Part I Introduction—Identifying, Assessing, Mitigating and Responding to Supply Chain Risk	18
	Supply Chain Risk Management	19
	Introduction	19
	This Book	20
	The Supply Chain Management Context	22
	The Need for Supply Chain Risk Management	23
	Apprehension without Action	23
	Robust Strategies for Supply Chain Management	24
	Disciplinary Roots of Supply Chain Risk Management	26
	Risk Identification	28
	Introduction	28
	A Conceptual View of Risk for Identification and Categorization	30
	A Butterfly Depiction of Supply Chain Risk	30
	Delays and Disruptions: ``Normal'' and ``Abnormal'' Risks	33
	Local-and-Global Drivers and Local-and-Global Consequences	35
	Risk Categorization Motivated by the Supply Chain Organization	37
	Supply Risks	38
	Process Risks	39
	Demand Risks	41
	Corporate-Level Risks	43
	Summary	47
	Risk Assessment	48
	Introduction	48
	What Risks to Assess	49
	How to Assess Risks	50
	Example of a Cross-Company Survey: What Risks and How to Assess	52
	Our Sample	52
	What Risks Were Assessed	53
	How We Assessed These Risks	55
	Discussion	62
	Summary	64
	Mitigating Risks	65
	Introduction	65
	Risk Mitigation Strategies	67
	Building Reserves for Redundancy	68
	Tailoring Risk Management for any Given Company	71
	Conclusion	77
	Response as a Mitigation Approach	78
	Introduction	78
	Examples of Disruptions and Their Impacts	78
	Dealing with Disruptions	79
	Time-Based Risk Management	80
	The 3-D Framework: Detect, Design, and Deploy	81
	Response Time and Impact	83
	Modeling Disruption Impact over Time	84
	Time-Based Risk Management in Practice	85
	Risk and Reward Considerations	87
	Conclusion	89
	How do Global Manufacturing Companies Mitigate Supply Chain Risks	90
	Introduction	90
	Literature Review	91
	Motivation	92
	Methodology	93
	Samsung Electronics	95
	Conclusions	102
	Part II Mitigation Approaches and Applications	105
	Strategic Approaches for Mitigating Supply Chain Risks	106
	Introduction	106
	Robust Supply Chain Strategies	108
	Conclusion	118
	Tactical Approaches for Mitigating Supply Chain Risks: Financial and Operational Hedging	120
	Introduction	120
	Different Types of Financial Risks	121
	Risks Associated with Input Material Costs	121
	Risks Associated with Labor Costs	122
	Risks Associated with Foreign Currency Exchange	123
	Risks Associated with Supplier Defaults	124
	Financial Instruments for Managing Input Material Cost and Foreign Exchange Risks	125
	Financial Instruments for Reducing Supplier Default Risks	131
	Operational Planning for Managing Cost Risks and Supplier Default Risks	135
	Capability for In-Season Replenishment	137
	Flexibility for Switching Sourcing Locations	139
	Integrated Financial and Operational Hedging	140
	Conclusions	143
	Application—Scenario Planning for Mitigating Supply Chain Restructuring Risk at a PVC Manufacturer	145
	Introduction	145
	One Company's Story: Restructuring A Post-Acquisition Supply Chain	146
	The Planning Spectrum	146
	Planning Processes and Optimization	147
	Use of Optimization for Strategic Supply-Chain Planning	149
	The Need for a Combined Process	149
	Scenarios and Scenario Planning	150
	Middle Ground	153
	Conclusion	155
	Application—Mitigating Outsourcing-Related Risks	156
	Introduction	156
	Risk 1: Underestimating the Strategic Value of Procurement	158
	Risk 2: Underestimating the Strategic Value of Outsourcing	159
	Risk 3: Poor Understanding of Internal Capability and Cost Structure	161
	Risk 4: Outsourcing the Wrong Thing	162
	Risk 5: Underestimating the Importance of Incentive Alignment	164
	Risk 6: Outsourcing Operations without Considering the Supply Chain	165
	Risk 7: Outsourcing without the Right Contracts	166
	Risk 8: Not Being Prepared for Supply Disruptions	167
	Conclusion	168
	Application: Mitigating New Product Development Risks—The Case of the Boeing 787 Dreamliner	169
	Introduction	169
	The 787 Dreamliner's Unconventional Supply Chain	173
	The Dreamliner's Supply Chain Risks	177
	What Boeing Did to Mitigate Risk	180
	What Might Boeing Have Done Differently to Mitigate Risk	183
	Conclusion	186
	Application: Managing Product Recalls—the Case of Mattel, Inc.	188
	Introduction	188
	Underlying Causes of Mattel's Product Recalls	190
	Mattel's Product Recall Management Process	191
	Challenges Pertaining to Product Recalls	195
	Opportunities Associated with Product Recalls	197
	Conclusion	198
	Part III Review of Quantitative Models for Managing Supply Chain Risk	199
	Risk Models for Supply Chain Management	200
	Introduction	200
	Supply Management	202
	Supply Network Design	202
	Supplier Relationships	204
	Supplier Selection Process	204
	Supplier Order Allocation	207
	Supply Contracts	211
	Robust Supply Management Strategies	216
	Demand Management	217
	Shifting Demand Across Time	219
	Shifting Demand Across Markets	222
	Shifting Demand Across Products	223
	Robust Demand Management Strategies	225
	Product Management	226
	Postponement	228
	Process Sequencing	231
	Robust Product Management Strategies	233
	Information Management	233
	Information Management Strategies for Managing Fashion Products	234
	Information Management Strategies for Managing Functional Products	235
	Robust Information Management Strategies	241
	Managerial Attitudes	242
	Conclusions	244
	Modeling the Value of Flexibility	246
	Introduction	246
	Supply-Cost Risk and the Value of Flexibility via Multiple Suppliers	247
	Supply-Commitment Risk: the Value of Flexibility via Flexible Supply Contracts	249
	Uniformly Distributed Market Shocks	250
	General Market Shocks	251
	Process risk: the Value of Flexibility via Flexible Manufacturing	253
	(Discrete) Uniformly Distributed Plant Capacity	254
	Normally Distributed Plant Capacity	255
	Demand Risk: the Value of Flexibility via Postponement	257
	Demand Risk: the Value of Flexibility via Responsive Pricing	258
	Conclusions	262
	Stochastic Programming for Supply Chain Planning Under Demand Uncertainty	264
	Introduction	264
	Motivation	265
	A Stochastic Program for Supply-Chain Planning	268
	A Stochastic Program for Asset Liability Management	268
	A Stochastic Program for Supply Chain Planning	269
	Comparison of SCP Model with the ALM Model	273
	Demand-Scenario Generation: An Example	274
	Risk Measures Consideration	274
	Modeling Choices	275
	Representation of Uncertainty	275
	Decision variables	276
	Time Periods and the Decision Horizon	276
	Objective function	277
	Constraints	278
	Solution-Technique Choices	278
	Decomposition	279
	Aggregation	280
	Sampling Scenarios	281
	Conclusion	281
	Part IV Perspectives and Topics for Future Research	283
	Researchers' Perspectives on Supply-Chain Risk Research	284
	Introduction	284
	Growing Interest in Supply Chain Risk	286
	Motivation for This Study	288
	Methodology	288
	Step 1 Findings: Diversity in Scope and Research Tools	289
	Step 2 Findings: A Closer Look at the Definition Gap	295
	Step 3 Findings: Three Gaps	296
	Addressing the Gaps	299
	Closing the Definition Gap	299
	Closing the Process Gap	301
	Closing the Methodology Gap	302
	Conclusion	304
	Conclusion and Future Research	305
	Introduction	305
	Identifying and Assessing Supply Chain Risk	306
	Mitigating and Responding to Supply Chain Risk	307
	The Nature of the Organization	308
	Managerial Impact	309
	Research Methods	310
	Final Thoughts	312
	References	313