To mitigate supply chain risks identified by the managers, this chapter describes three general risk mitigation strategies: (1) alignment of supply chain partners incentives to reduce the behavioral risks within the supply chain, (2) flexibility to reduce not only demand risks but also supply and process risks, and (3) building “buffers” or redundancies. We also discuss ways for managers to adapt these general risk-mitigation strategies to the circumstances of their particular company.
KeywordsSupply Chain Risk Mitigation Revenue Sharing Uncertain Demand Supply Chain Partner
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