JIT and supply chain disruptions following a major disaster: A case study from the auto industry

2018 ◽  
Vol 37 (6) ◽  
pp. 51-58
Author(s):  
Amelia Hsern Yong Lim ◽  
Cheng Ling Tan
Author(s):  
Varun J. Prabhakar ◽  
Hannah Allison ◽  
Peter Sandborn ◽  
Bo Eriksson

Long life cycle products, commonly found in aviation, medical and critical infrastructure applications, are often fielded and supported for long periods of time (20 years or more). The manufacture and support of long life cycle products rely on the availability of suitable parts, which over long periods of time, leaves the parts susceptible to supply chain disruptions such as suppliers exiting the market, allocation issues, counterfeit part risks, and part obsolescence. Proactive mitigation strategies exist that can reduce the impact of supply chain disruptions. One solution to mitigating the supply chain risk is the strategic formulation of part sourcing strategies (optimally selecting one or more suppliers from which to purchase parts over the life of the part’s use within a product or organization). Strategic sourcing offers a way of avoiding the risk of part unavailability (and its associated penalties), but at the expense of qualification and support costs for multiple suppliers. An alternative disruption mitigation strategy is hoarding. Hoarding involves stocking enough parts in inventory to satisfy the forecasted part demand (for both manufacturing and maintenance requirements) of a fixed future time period. This excess inventory provides a buffer that reduces the effect of supply chain disruptions on the part total cost of ownership (TCO), but increases the total holding cost. This paper presents a method of performing tradeoff analyses and identifying the optimal combination of second sourcing and hoarding for a specific part and product scenario. A case study was performed to examine the effects of hoarding on both single and second sourced parts. The case study results show that hoarding can contribute to a decrease in the cumulative TCO and a decrease in its variance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt

PurposeThis paper explores the steps/countermeasures taken by firms to address supply chain disruptions in the wake of COVID-19.Design/methodology/approachThis study employs a case study methodology and employs 46 semi-structured interviews with senior managers of the three buying firms, four distribution centres and four supplying firms based in four countries (Pakistan, Sri Lanka, China and India).FindingsResults reveal that manufacturers are refining production schedules to meet the production challenges. Distributors are working with secondary suppliers to meet the inventory shortage. Finally, supplying firms are evaluating the impact of demand, focusing on short-term demand-supply strategy, preparing for channel shifts, opening up additional channels of communication with key customers, understanding immediate customer’s demand and priorities and finally becoming more agile.Research limitations/implicationsThere are some limitations to this study. First, the results of this study cannot be generalized to a wider population. Second, this study explores the interpretations of senior managers based in four Asian countries only.Practical implicationsSupply chain firms can use these findings to understand how COVID-19 is affecting firms. Firms can also use the suggestions provided in this study to mitigate the impact of COVID-19 and make the best out of this pandemic.Originality/valueThis study contributes to the supply chain disruption literature by exploring the robust countermeasure taken by supply chain firms amid COVID-19 outbreak. In particular, it explores such countermeasures from the perspective of three different entities (buyer, supplier and distributor) based in four different countries in the South Asian region.


Author(s):  
Archana M S ◽  
Kavya C ◽  
Prathiksha B

Be it agriculture, manufacturing or production of energy, all are a part of supply and demand mechanics controlling freights and container ships, bringing the world’s industry together leading to globalization of economy. The world’s food, products were transported by the shipping industry with supply chain as its core. 94% of the Fortune 500 companies are seeing covid 19 supply chain disruptions as per 2020 Forbes report. Supply chains of today are very intricate and interconnected; disruption at one part can spread in an unpredicted manner. This paper helps the reader analyze various supply chain models and the impact of disruptions caused by the pandemic. At first, it discusses supply chain management and its risks due to pandemics. It then, discusses a case study of Unilever restructuring its supply chain system. The paper also suggests a methodology for supply chain management during pandemic. The outcomes and insights of this paper can be used by decision makers for risk management in supply chains and leads a step for future research.


2001 ◽  
Vol 12 (1) ◽  
pp. 21-35 ◽  
Author(s):  
Göran Svensson

This research explores the linkage between firms' outsourcing activities and the occurrence of supply chain disruptions. It is based upon a two‐phase process utilizing methodological triangulation. Phase one applies qualitative methods that explore the overall environment of outsourcing and disruptions in supply chains in the automotive industry based upon a case study of a Swedish car manufacturer. Phase two applies quantitative methods to test the findings from phase one in a wider context in the automotive industry. The results indicate that there is a significant association between the outsourcing of internal activities and the occurrence of disruptions in firms' inbound logistics flows from subcontractors.


2021 ◽  
Vol 7 (1) ◽  
pp. 4
Author(s):  
Edward Anuat ◽  
Douglas L. Van Bossuyt ◽  
Anthony Pollman

The ability to provide uninterrupted power to military installations is paramount in executing a country’s national defense strategy. Microgrid architectures increase installation energy resilience through redundant local generation sources and the capability for grid independence. However, deliberate attacks from near-peer competitors can disrupt the associated supply chain network, thereby affecting mission critical loads. Utilizing an integrated discrete-time Markov chain and dynamic Bayesian network approach, we investigate disruption propagation throughout a supply chain network and quantify its mission impact on an islanded microgrid. We propose a novel methodology and an associated metric we term “energy resilience impact” to identify and address supply chain disruption risks to energy security. The proposed methodology addresses a gap in the literature and practice where it is assumed supply chains will not be disrupted during incidents involving microgrids. A case study of a fictional military installation is presented to demonstrate how installation energy managers can adopt this methodology for the design and improvement of military microgrids. The fictional case study shows how supply chain disruptions can impact the ability of a microgrid to successfully supply electricity to critical loads throughout an islanding event.


2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Erica Lindroth ◽  
Hà Huong ◽  
Rickard Bergqvist

AbstractPrevious research have distinguished the risks of supply chain disruptions and the negative effect of supply chain disruption on operational performance in terms of sales, costs and inventory. However, few researchers have studied supply chain risk management and strategies in relation to port conflicts. The 2016 port conflict at a major logistics port in Scandinavia, the Port of Gothenburg, posed an opportunity to study risk management and strategies in the context of major port disruptions, in this case, a labour conflict. The fashion retail industry was affected especially hard due to the short product life cycles and this paper, by means of case study method and analysis, investigates five cases in order to understand how they were affected and what mitigation strategies was used. Results illustrates that during the port conflict, the percentage of increase in logistics cost ranged between 15% and 70%, greatly affected by what mitigation strategy was used by the case company.


Sign in / Sign up

Export Citation Format

Share Document