Incorporating the Predictability of Consequences into a Disruption Management Framework

Abstract

The authors introduce a disruption management framework that incorporates both the probability of disruption and the predictability of consequences. The resulting model prescribes one of four supply chain strategies: flexibility, risk and loss mitigation, agility, and resilience. Managers can leverage the presented framework within a comprehensive supply chain risk management process to develop tactics aligned with risk management, supply chain, and overall operating strategies to overcome a range of disruption consequences.