Abstract for:Linking supply chain risk to supplier risk: a dynamic perspective
Using a real-world case study we show how static risk analysis in the context of supply chains proves to be inadequate when making supplier selection decisions. Even when the “best” supplier is chosen, in the context of known demand, supplier-side process issues may end up demonstrating behavior that is counter to expectations. While this type analysis has not received much attention, static techniques are showing up that address the issues that we are considering. Changing a primary supplier has not received much attention in the literature. One source of inspiration for this study is how notion of self-organization and counter-intuitiveness while the study is also motivated by the literature on biases in behavioral operations management .This is a two stage problem that requires (a) an organization to recognize in a timely manner the need to cease relationship with an existing supplier and (b) to quickly onboard the replacement supplier(s). To that end, the objective of this study is to (a) explore how to incorporate biases in proactive evaluation of risks and (b) assess the performance of supplier choices under different scenarios.