Disruptions in tightly coupled supply chain networks: the case of the US offshore oil industry |
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Authors: | Stephan M Wagner Kamil J Mizgier Philippe Arnez |
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Institution: | 1. Department of Management, Technology, and Economics , Swiss Federal Institute of Technology Zurich , Weinbergstrasse 56/58, 8092 , Zurich , Switzerland stwagner@ethz.ch;3. Department of Management, Technology, and Economics , Swiss Federal Institute of Technology Zurich , Weinbergstrasse 56/58, 8092 , Zurich , Switzerland |
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Abstract: | Managers have paid increasing attention to the exposure of their supply chains to disruptions and seek ways to mitigate supply chain vulnerability. The interconnectedness of tightly coupled supply chain networks makes this a challenging task, because interconnectedness and tight coupling of nodes in the network lead to an amplification of the actual risk exposure. This phenomenon can be attributed to the propagation of losses through the network, which exhibits certain dynamics. In order to investigate this mechanism, we studied the complex supply chain network of the oil industry in the Gulf of Mexico. Our results provide an estimate of the economic impact of eventual random and hurricane-related disruptions and can be used as a decision support tool for risk management of supply disruptions in interconnected supply chain networks. |
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Keywords: | supply chain risk management supply chain networks structural analysis complexity oil industry |
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