Abstract
An international supply chain is conceptualized as a complex, dynamic system in which disruptions interact with long shipping and lead times to generate costs. Findings from a case study and simulation model indicate that demand-related disruptions created substantial and unexpected costs in terms of expedited shipping, high inventories, and lower demand fulfillment. Production-related disruptions declined over time, but demand-related disruptions did not. Implications for management are discussed.
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*David Levy (D.B.A., Harvard Business School) is Assistant Professor in the Department of Management, University of Massachusetts, Boston. His research interests include the management of international supply chains and the environmental performance of multinational corporations.
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Levy, D. International Sourcing and Supply Chain Stability. J Int Bus Stud 26, 343–360 (1995). https://doi.org/10.1057/palgrave.jibs.8490177
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DOI: https://doi.org/10.1057/palgrave.jibs.8490177