Analysis of Supply Chain Disruptions from the Great East Japan Earthquake in the Automotive Industry and Electronic Parts/Devices

Author(s):  
Suminori Tokunaga ◽  
Mitsuru Okiyama
Author(s):  
Vasco M. Carvalho ◽  
Makoto Nirei ◽  
Yukiko U. Saito ◽  
Alireza Tahbaz-Salehi

Author(s):  
Vasco M Carvalho ◽  
Makoto Nirei ◽  
Yukiko U Saito ◽  
Alireza Tahbaz-Salehi

Abstract Exploiting the exogenous and regional nature of the Great East Japan Earthquake of 2011, this paper provides a quantification of the role of input-output linkages as a mechanism for the propagation and amplification of shocks. We document that the disruption caused by the disaster propagated upstream and downstream along supply chains, affecting the direct and indirect suppliers and customers of disaster-stricken firms. Using a general equilibrium model of production networks, we then obtain an estimate for the overall macroeconomic impact of the disaster by taking these propagation effects into account. We find that the earthquake and its aftermaths resulted in a 0.47 percentage point decline in Japan’s real GDP growth in the year following the disaster.


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.


2020 ◽  
Vol 22 (4) ◽  
pp. 683-699 ◽  
Author(s):  
Kevin B. Hendricks ◽  
Brian W. Jacobs ◽  
Vinod R. Singhal

Problem definition: This paper provides empirical evidence on the effect of the 2011 Great East Japan Earthquake (GEJE) on the financial performance of firms. Academic/practical relevance: The GEJE was characterized as the most significant disruption ever for global supply chains. In its aftermath, there was a great deal of debate about the risks and vulnerabilities of global supply chains, and there were calls to redesign and restructure supply chains. Methodology: We empirically estimate the effect of the GEJE on the stock prices of firms. Our analyses are based on a global sample of 470 firms collected from articles and announcements in the business press that identify affected firms, as well as 382 firms that are not mentioned in the business press but are in industries potentially subject to contagion or competitive effects. Results: We estimate that firms experiencing supply chain disruptions as a result of the GEJE lost on average 5.21% of their shareholder value during the one-month period after the GEJE. For Japanese firms, the effect was much more severe with an average 9.32% loss in shareholder value. Non-Japanese firms averaged a 3.73% loss in shareholder value. We also find that upstream and downstream supply chain propagation effects from the GEJE are negative, and the contagion effect on firms related to the nuclear industry is very negative. For firms in the rebuilding industries or competitors to firms affected by the GEJE, the competitive effect from the GEJE is positive. Managerial implications: The loss suffered by both Japanese firms and non-Japanese firms experiencing supply chain disruptions as a result of the GEJE is economically significant. Although the loss is more severe for firms whose operations were directly affected by the GEJE, it is also significant for firms who experienced indirect effects from their upstream and downstream supply chain partners, further confirming the importance of supply chain risk mitigation strategies.


Author(s):  
Vasco M. Carvalho ◽  
Makoto Nirei ◽  
Yukiko U. Saito ◽  
Alireza Tahbaz-Salehi

Author(s):  
Peter Sandborn ◽  
Varun Prabhakar ◽  
Bo Eriksson

Component reuse in multiple products has become a popular way to take advantage of the economies of scale across a family of products. Amongst electronic system developers there is a desire to use common electronic parts (chips, passive components, and other parts) in multiple products for all the economy of scale reasons generally attributed to platform design. However, the parts in electronic systems (especially those manufactured and supported over significant periods of time), are subject to an array of long-term lifecycle supply chain disruptions that can offset savings due to part commonality depending on the availability of finite resources to resolve problems on multiple products concurrently. In this paper we address the application of product platform design concepts to determine the best reuse of electronic components in products that are subject to long-term supply chain disruptions such as reliability and obsolescence issues. A detailed total cost of ownership model for electronic parts is coupled with a finite resource model to demonstrate that, from a lifecycle cost viewpoint, there is an optimum quantity of products that can use the same part beyond which costs increase. The analysis indicates that the optimum part usage is not volume dependent, but is dependent on the timing of the supply chain disruptions. This work indicates that the risk and timing of supply chain disruptions should be considered in product platform design.


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