Managing Supply Chain Disruptions via Time-Based Risk Management

  • ManMohan S. Sodhi
  • Christopher S. Tang


We wish to motivate research on the practice of preplanned response to rare events that can disrupt the supply chain. We present a time-based risk mitigation concept and illustrate how this concept could enable companies to reduce the impact of such events while potentially increasing their competitiveness. The underlying idea is that if a firm can shorten the response time by deploying a recovery plan soon after a disruption, then this firm can reduce the impact of the disruption by way of fast recovery. We present examples from a wide variety of contexts to highlight the value of time-based risk management.


Supply Chain Supply Chain Management Epidemic Model Recovery Plan Supply Chain Partner 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Allmendinger, G., and R. Lombreglia, “Four Strategies for the Age of Smart Services”, Harvard Business Review, pp. 1–10, October, 2005Google Scholar
  2. Anderson, C., Hazards and Vulnerability Analysis, Report, University of North Texas, 2002. (Available at: Scholar
  3. Arora, V.K. and G.J. Boer, “Fire as an Interactive Component of Dynamic Vegetation Models”, Journal of Geophysics Research, Vol. 110, pp. 1–20, 2005CrossRefGoogle Scholar
  4. Billington, C., “HP Cuts Risk with Portfolio Approach”, Purchasing Magazine Online, February 21, 2002Google Scholar
  5. Blackburn, J., Time-Based Competition: The Next Battleground in American Manufacturing, McGraw-Hill Publishers, Massachusetts, 1990Google Scholar
  6. Casey, N. and A. Pasztor, “Safety Agency, Mattel Clash Over Disclosures”, Wall Street Journal, A.1, September 4, 2007Google Scholar
  7. Chopra S. and M Sodhi, “Avoiding Supply Chain Breakdown”, Sloan Management Review, Fall, pp. 53–62, Vol. 46, No. 1, 2004Google Scholar
  8. Cottrill, K., “A Game Plan for Disaster Recovery”, MIT Supply Chain Strategy, Vol. 2, No. 6, pp. 4–9, June, 2006Google Scholar
  9. Dawson, A., S. Hassenpflug, and J. Sloan, “California Agriculture Trade: Combating the Med fly Menace”, Case Study, Center for Trade and Commercial Diplomacy, Monterey Institute of International Studies, Monterey, California, 1998Google Scholar
  10. Denardo, E.V., The Science of Decision Making: A Problem-Based Approach Using Excel, Wiley Publisher, New York, 2002Google Scholar
  11. Eskew, M., “Mitigating Supply Chain Risk”, CEO, pp. 25–26, April, 2004Google Scholar
  12. Ferdows, K., M. Lewis, and J. Machuca, “Rapid Fire Fulfilment”, Harvard Business Review, pp. 104–117, November, 2004Google Scholar
  13. Ghemawat, P. and J. Nueno, “Zara: Fast Fashion”, Harvard Business School Case # 9-703-497, Harvard Business School, 2003Google Scholar
  14. Hartwigsen, K., “Integrated Crisis Management: Building a framework for unified response”, Nike Internal Presentation, 2006Google Scholar
  15. Hendricks, K. and V. Singhal, “An Empirical Analysis of the Effect of Supply Chain Disruptions on Long-run Stock Price Performance and Equity Risk of the Firm”, Production and Operations Management, pp. 25–53, Spring, 2005Google Scholar
  16. Hicks, M., “When Supply Chain Snaps”, eWeek, February 18, 2002Google Scholar
  17. Hopkins, K., “Value Opportunity Three: Improving the Ability to Fulfill Demand”, Business Week, January 13, 2005Google Scholar
  18. Janssens, M., Introduction to Mathematical Fire Modeling, Second Edition, CRC Publisher, 2000Google Scholar
  19. Lee, H., “The Triple-A Supply Chain”, Harvard Business Review, pp. 102–112, October, 2004Google Scholar
  20. Lee, H. and M. Wolfe, “Supply Chain Security Without Tears”, Supply Chain Management Review, Vol. 7, No. 1, pp. 12–20, January, 2003Google Scholar
  21. Lee, H, and J. Whang, “Seven Eleven Japan”, Stanford Business School case # GS-18, 2006Google Scholar
  22. Martha J., and S. Subbakrishna, “Targeting a Just-in-Case Supply Chain for the Inevitable Next Disaster”, Supply Chain Management Review, September, 2002Google Scholar
  23. Mollison, D., Epidemic Models: Their Structure and Relation to Data, Cambridge University Press, 2003Google Scholar
  24. Poirier, C. and F. Quinn, Calibration Supply Chain Management, Computer Sciences Corporation Report, 2003Google Scholar
  25. Pyke, D. and C.S. Tang, “How to Mitigate Product Safety Risks Proactively? Process, Challenges and Opportunities”, working paper, UCLA Anderson School, 2008Google Scholar
  26. Reynolds, P., “Multiple Failures Caused Relief Crisis”, BBC News, September 7, 2005. (Article available at: Scholar
  27. Rice B. and Caniato F., “Supply Chain Response to Terrorism: Creating Resilient and Secure Supply Chains”, Supply Chain Response to Terrorism Project Interim Report, MIT Center for Transportation and Logistics, MIT, Massachusetts, 2004Google Scholar
  28. Richards, G.D., “A general mathematical framework for modelling two dimensional wildland fire spread”. International Journal of Wild land Fire, 5, 63–72, 1995CrossRefMathSciNetGoogle Scholar
  29. Sheffi, Y., “Building a Resilient Supply Chain”, Harvard Business Review, pp. 3–5, October, 2005Google Scholar
  30. St. George, A., “Li, and Fung: Beyond ‘Filling in the Mosaic’ ”, Harvard Business School case 9-398-092, 1998Google Scholar
  31. Stalk, G. and T. Hout, Competing Against Time: How Time-based Competition is Reshaping Global Markets, Free Press, New York, 1991Google Scholar
  32. Tang, C.S. “Robust Strategies for Mitigating Supply Chain Disruptions”, International Journal of Logistics: Research and Applications, Vol. 9, pp. 33–45, 2006Google Scholar
  33. Van Wassenhove, L., “Humanitarian Aid Logistics: Supply Chain Management in High Gear”, Journal of Operational Research Society, Vol. 57, pp. 475–489, 2006zbMATHCrossRefGoogle Scholar
  34. Zsidisin, G., Panelli, A., and Upton, R. “Purchasing Organization Involvement in Risk Assessments, Contingency Plans, and Risk Management: An Exploratory Study”, Supply Chain Management: An International Journal, pp. 187–197, 2001Google Scholar
  35. Zsidisin, G., Ellram, L., Carter, J., and Cavinato, J. “An Analysis of Supply Risk Assessment Techniques”, International Journal of Physical Distribution and Logistics Management, Vol. 34, No. 5, pp. 397–413, 2004CrossRefGoogle Scholar

Copyright information

© Springer-Verlag London Limited 2009

Authors and Affiliations

  • ManMohan S. Sodhi
    • 1
  • Christopher S. Tang
    • 2
  1. 1.Cass Business SchoolCity University of LondonLondonUK
  2. 2.UCLA Anderson SchoolUniversity of CaliforniaLos AngelesUSA

Personalised recommendations