An analysis of the ripple effect for disruptions occurring in circular flows of a supply chain network*

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2021-06-03
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Blackhurst, Jennifer
Paul, Chinju
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Park, Young-Woong
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Scheibe, Kevin
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Information Systems and Business Analytics
In today’s business landscape, information systems and business analytics are pivotal elements that drive success. Information systems form the digital foundation of modern enterprises, while business analytics involves the strategic analysis of data to extract meaningful insights. Information systems have the power to create and restructure industries, empower individuals and firms, and dramatically reduce costs. Business analytics empowers organizations to make precise, data-driven decisions that optimize operations, enhance strategies, and fuel overall growth. Explore these essential fields to understand how data and technology come together, providing the knowledge needed to make informed decisions and achieve remarkable outcomes.
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Information Systems and Business Analytics
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This paper examines the ripple effect in supply chains due to circular flows embedded in supply chain design. Although supply chains are complex and nonlinear, circular flows exist in real-world supply chains but are often unknown or hidden to supply chain managers. These circular flows exist when a Tier 2 supplier is also a Tier 3 (or higher) supplier in the supply chain network. Additionally, a circular network can occur when a supplier is also a customer in the same network. In the presence of these types of supply chain network structures, supply chains may experience a ripple effect (or disruption propagation) in which disruptions impact supply chain performance. Using a real-world supply chain structure, we examine the effect of circular flows on the ripple effect and identify how this influences the supply chain’s resilience to disruptions. We offer managers and researchers insights that improve the understanding of how circular flows exacerbate the ripple effect.

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Young Woong Park, Jennifer Blackhurst, Chinju Paul & Kevin P. Scheibe (2021): An analysis of the ripple effect for disruptions occurring in circular flows of a supply chain network*, International Journal of Production Research, DOI: 10.1080/00207543.2021.1934745. Posted with permission

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Fri Jan 01 00:00:00 UTC 2021
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