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Thus, managers can limit their options to a backup supplier (contingent sourcing) or an additional regular supplier (dual sourcing).
Our results also show that, unless the backup supplier can supply with zero lead time, using dual sourcing appears to be preferable.
The interactions between the purchasing firm and the backup supplier are examined through a decision-tree approach that takes disruption situations at all levels into consideration.
To ensure the actual arrival of backup supply in cases of primary supply disruptions, a purchasing firm needs to work with its backup supplier to forge a strong partnership that not only protects itself, but also assures the backup supplier׳s economic benefit.
Likewise, we can all prepare for bad luck events at work by incorporating safety margins in what we do (take an earlier flight to that meeting; add two extra days to the next deadline), acquiring options (line up that backup supplier), and building a strong network of people at work who will help (say, by siding with you and not your bad boss).
The energy of the EVs could be consumed in three different ways: road trips, backup supplier and peak shavings.
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It's not enough to just make sure you have backup suppliers.
The model accounts for epistemic uncertainty of critical data and applies several proactive strategies such as suppliers' business continuity plans, fortification of suppliers and contracting with backup suppliers to enhance the resilience level of the selected supply base.
The Obama administration is smart to try to line up backup suppliers for China — talking to Saudi Arabia and others — as part of its bid to get Beijing to support tougher sanctions.
Contracts with backup suppliers can be negotiated to give a company priority over others should a disruption with the primary supplier occur, which would decrease time to recovery and financial impact.
He was alluding to Sleepy Hollow's role as backup water supplier for Pocantico Hills, site of the Rockefeller park.
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CEO of Professional Science Editing for Scientists @ prosciediting.com