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Dedication |
5 |
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Contents |
9 |
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About the Editors |
12 |
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1 Research in Supply Chain Risk: Historical Roots and Future Perspectives |
14 |
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1 A Rich and Developing History |
14 |
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2 Shifting Toward Digitalization and Data Analytics |
15 |
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3 Structure of the Book |
16 |
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3.1 Assessing Supply Chain Risk—The First Step in Managing Supply Chain Risk |
17 |
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3.2 Creating Resiliency by Managing Supply Chain Risk |
18 |
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3.3 Incorporating Relational and Behavioral Perspectives |
19 |
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3.4 Managing Risk in Sustainable and Innovative Supply Chains |
20 |
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3.5 Emerging Typologies and Taxonomies |
22 |
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3.6 Grounding Our Understanding of Supply Chain Risk: Cases and Observations |
22 |
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4 Conclusions |
23 |
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References |
24 |
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Assessing Supply Chain Risk—The First Step in Managing Supply Chain Risk |
26 |
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2 Assessing the Vulnerability of Supply Chains: Advances from Engineering Systems |
27 |
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1 Introduction |
27 |
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1.1 Background |
27 |
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1.2 Objectives |
28 |
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2 Concepts and Definitions |
28 |
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3 Framework for Vulnerability Assessment |
29 |
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4 An Updated Toolbox |
31 |
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4.1 Epoch-Era Analysis |
32 |
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4.2 Failure Mode Methods |
33 |
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4.3 System Design Methods |
36 |
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5 Using the Toolbox in Supply Chain Vulnerability Assessment |
40 |
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5.1 Step 1: Definition of Scope of Work |
40 |
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5.2 Step 2: Description of SC/SCM Context |
41 |
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5.3 Step 3: Taxonomy Development |
41 |
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5.4 Step 4: Scenario Development |
42 |
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5.5 Step 5: Criticality Ranking |
43 |
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5.6 Step 6: Scenarios of Importance |
44 |
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5.7 Step 7: Reducing Likelihood and Consequence |
44 |
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6 Summary |
45 |
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References |
46 |
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3 Using Scenario Planning to Supplement Supply Chain Risk Assessments |
48 |
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1 Introducing a Well-Known Problem |
48 |
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1.1 Attempting to Make the Uncertain, Well … Certain |
49 |
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1.2 A Gap in Research |
50 |
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2 Scenario Planning: Accepting Uncertainty |
50 |
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2.1 Plausible Futures, not Forecasts |
50 |
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2.2 A Divergence from Other Scenario Planning Methods |
51 |
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3 The Roots of Scenario Planning |
51 |
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4 Using Scenario Planning for Supply Chain Risk Management |
52 |
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4.1 Involving the Right People |
53 |
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4.2 The Focusing Question |
54 |
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4.3 Brainstorming Influences on the Focusing Question |
55 |
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4.4 Grouping Individual Forces into Driving Forces |
56 |
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4.5 Ranking and Rating Forces |
57 |
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4.6 The Scenario Matrix |
58 |
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4.7 Writing Scenarios |
58 |
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4.8 An Alternative to the Scenario Matrix Approach |
60 |
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4.9 Identifying Signals for Action |
60 |
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5 Scenario Planning Challenges |
61 |
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6 Summary |
61 |
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References |
61 |
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4 Decision Support Systems and Artificial Intelligence in Supply Chain Risk Management |
63 |
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1 Introduction |
63 |
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2 Multiple-Criteria Decision Analysis for SCRM |
65 |
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2.1 MCDA Methods |
65 |
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2.2 Related Techniques |
66 |
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3 Mathematical Programming for SCRM |
68 |
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3.1 Modelling Uncertainty |
68 |
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3.2 Model Solving |
69 |
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4 AI Techniques for SCRM |
71 |
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4.1 Petri Nets |
71 |
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4.2 Multi-agent Systems |
72 |
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4.3 Automated Rule-Based Reasoning |
73 |
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4.4 Machine Learning |
74 |
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5 Conclusions |
76 |
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References |
77 |
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5 Resilience Assessment in Complex Supply Networks |
82 |
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1 Introduction |
82 |
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2 Supply Chain Resilience |
83 |
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3 Elements of Supply Chain Resilience |
86 |
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4 A Framework for Resilience Assessment in Supply Networks |
88 |
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4.1 Supply Chain Design |
88 |
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4.2 Supplier-Related Factors |
93 |
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4.3 Relational Competencies |
96 |
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4.4 Physical Capital Resources |
99 |
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4.5 Human Capital Resources |
101 |
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4.6 Overall Resilience Score |
102 |
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5 Conclusion and Future Research |
103 |
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References |
104 |
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Creating Resiliency by Managing Supply Chain Risk |
108 |
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6 What Value for Whom in Risk Management?—A Multi-value Perspective on Risk Management in an Engineering Project Supply Chain |
109 |
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1 Introduction: Value for Whom? |
109 |
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2 Why Do We Need a Multi-value Perspective? Insights from Literature |
110 |
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2.1 Supply-Chain Risk Management Perspectives and Perceptions |
111 |
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2.2 Value for Stakeholders in Risk Management |
112 |
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3 Empirical Study: The Multiple Value Perspectives of Risk Management for Stakeholders |
113 |
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3.1 Research Method |
113 |
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3.2 The Multiple Value Perspectives of Risk Management for Stakeholders |
114 |
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3.3 The Outcome-Related Value Perspective of Risk Management |
115 |
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3.4 The Process Quality-Related Value Perspectives of Risk Management |
117 |
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3.5 Discussion: Learnings from Empirical Studies |
122 |
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3.6 Process Regarding Multi-value Perspectives |
122 |
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4 Conclusions |
126 |
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References |
127 |
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7 Risk Management of Critical Logistical Infrastructures: Securing the Basis for Effective and Efficient Supply Chains |
129 |
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1 Introduction |
129 |
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2 Risks for Critical Logistical Infrastructures |
130 |
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2.1 Categorization and Interdependencies |
133 |
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2.2 Existing Methodology |
133 |
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3 Evaluation of Risks for Critical Logistical Infrastructures |
136 |
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3.1 Basic Assumptions |
136 |
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3.2 Evaluation Approach |
137 |
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3.3 Implementation |
137 |
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3.4 Strengths, Weaknesses, and Extensions |
138 |
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4 Summary and Outlook |
140 |
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References |
141 |
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8 Procedure Model for Supply Chain Digitalization Scenarios for a Data-Driven Supply Chain Risk Management |
144 |
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1 Introduction |
144 |
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2 Research Overview |
145 |
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3 Model Development |
147 |
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3.1 Focus Definition and Selection of Evaluation KPIs |
148 |
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3.2 Evaluation of the Risk Situation |
149 |
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3.3 Definition of Requirements for Future Supply Chain Risk Management |
151 |
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3.4 Scenario Development |
152 |
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3.5 Scenario Assessment |
153 |
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3.6 Concept Creation |
157 |
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4 Conclusion |
157 |
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References |
158 |
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9 Preparing for the Worst |
162 |
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1 Preparing for the Worst |
162 |
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2 Real Options: The Value of Preparation |
163 |
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2.1 Options’ Valuation |
163 |
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2.2 Four Common Categories of Real Options for Preparation |
164 |
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3 Redundancy |
164 |
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3.1 A First Line of Redundancy: Extra Inventory |
164 |
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3.2 Practical Upper Limits on Inventory |
165 |
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3.3 Other Kinds of Redundancy |
166 |
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4 Flexibility |
166 |
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4.1 Flexible Manufacturing: The Option to Make Anything |
167 |
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4.2 Flexible Distribution Networks: Emergency Realignment |
168 |
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4.3 Mobile Flexible Assets |
168 |
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5 Places: Emergency Operations Centers |
169 |
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5.1 Facility Monitoring: Who’s Minding the Stores |
169 |
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5.2 The Local and the Global |
170 |
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6 Ready for the Worst: Business Continuity Plans |
170 |
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6.1 When the Going Gets Tough, the Tough Use Playbooks |
171 |
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6.2 Playbooks to the People |
172 |
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6.3 Drill, Baby, Drill |
172 |
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6.4 The Bigger Picture: From BCP to BCM to ERM |
173 |
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7 SCRM as a Real Option |
173 |
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7.1 Response Investments |
174 |
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References |
174 |
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10 The Future of Resilient Supply Chains |
176 |
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1 Introduction |
176 |
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2 Theoretical Background |
177 |
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3 Research Methodology |
180 |
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3.1 Data Collection and Analysis |
180 |
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4 Results and Discussion |
182 |
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4.1 Insights from the Academic Panel |
182 |
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4.2 Insights from the Practitioner Panel |
187 |
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5 Conclusion and Future Directions |
190 |
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References |
192 |
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Incorporating Relational and Behavioral Perspectives |
194 |
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11 Can Buyer Consortiums Improve Supplier Compliance? |
195 |
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1 Introduction |
195 |
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2 The Model |
199 |
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2.1 Independent Audits (I) |
201 |
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2.2 Joint Audits (J) |
204 |
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3 Independent Versus Joint Audits Equilibrium Comparison |
207 |
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4 Conclusions |
210 |
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5 Appendix—Proofs |
211 |
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References |
213 |
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12 Leadership in Risky Supply Chains |
215 |
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1 Dropping Old Tools |
217 |
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2 Reframing Through Divergence |
219 |
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3 Reframing Value Patterns |
221 |
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4 The Hazards of Adaptive Leadership in Dynamic Supply Chains |
223 |
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5 Conclusion |
225 |
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References |
225 |
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13 Malicious Supply Chain Risk: A Literature Review and Future Directions |
227 |
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1 Introduction |
227 |
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2 Literature Review |
228 |
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2.1 Examples of Malicious Risks |
229 |
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3 Managing Malicious Risks |
231 |
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4 Drivers of Malicious Risks |
233 |
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4.1 Micro-Drivers: Behaviorally Driven Risk |
233 |
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4.2 Meso-Drivers: Structurally Driven Risk |
234 |
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4.3 Macro-Drivers: Network Exposure |
234 |
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5 Conclusion |
234 |
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References |
235 |
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14 A Behavioural View of Supply Chain Risk Management |
238 |
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1 Behavioural Supply Chain Management |
238 |
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2 Supply Chain Risk Management: Limitations and Opportunities for Research |
239 |
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2.1 Assumption 1: Objective Assessment of Risk |
240 |
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2.2 Assumption 2: Rational Decision Rules |
244 |
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3 Conclusion |
247 |
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References |
247 |
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Managing Risk in Sustainable and Innovative Supply Chains |
253 |
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15 Resilience and Sustainability in Supply Chains |
254 |
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1 Introduction |
254 |
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2 Discussion |
256 |
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2.1 Supply Chain Resilience |
256 |
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2.2 Supply Chain Sustainability |
258 |
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2.3 Resilience and Sustainability |
259 |
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2.4 Relevance to Practice |
263 |
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3 Conclusion |
264 |
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References |
265 |
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16 Sustainability Risk Management in Supply Chain |
267 |
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1 Introduction |
267 |
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2 Sustainable Supply Chain |
268 |
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3 Sustainability Risks in the Supply Chain |
269 |
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4 Risk Management in a Sustainable Supply Chain |
271 |
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5 Case Examples of Sustainable Supply Chain Risk Management |
274 |
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5.1 Requirements for Responsibility in Purchasing |
274 |
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5.2 The Process of Responsibility Assurance in the Supply Chain |
275 |
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5.3 The Role of Risk Management in Assuring Responsibility in the Supply Chain |
276 |
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6 Discussion and Conclusions |
278 |
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References |
279 |
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17 The Relationship Between Firm Resilience to Supply Chain Disruptions and Firm Innovation |
281 |
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1 Introduction |
281 |
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2 Literature Review: Firm Innovation and Firm Resilience |
282 |
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3 Research Process |
283 |
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4 The Linkage Between Innovation and Resilience: A Dynamic Capability View |
284 |
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5 Supply Chain Resilience |
285 |
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5.1 Antecedents of Supply Chain Resilience |
285 |
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6 Firm Innovation |
287 |
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6.1 Antecedents of Firm Innovation |
290 |
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7 Organizational Capabilities to Improve Both Firm Innovation and Firm Resilience |
291 |
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8 Future Research |
293 |
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9 Conclusion |
294 |
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References |
294 |
|
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18 Supply Chain Virtualization: Facilitating Agent Trust Utilizing Blockchain Technology |
301 |
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1 Introduction |
301 |
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2 Risk and Virtual Supply Chains |
302 |
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3 Issues in the Management of Virtual Supply Chain Risk |
303 |
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3.1 Transparency |
304 |
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3.2 Traceability |
304 |
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3.3 Authenticity |
305 |
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4 Reducing Risk by Building Trusting Relationships |
305 |
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4.1 Three Drivers for Trusting Relationships |
306 |
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5 Opportunities for Creating Trusting Relationships Using Blockchain Technology |
307 |
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5.1 What Is Blockchain? |
308 |
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5.2 How Can Blockchain Enable Trust in Virtual Supply Chains? |
308 |
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6 Conclusion |
311 |
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References |
312 |
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Emerging Typologies and Taxonomies |
314 |
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19 Differentiating Between Supply and Supplier Risk for Better Supply Chain Risk Management |
315 |
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1 Introduction |
315 |
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2 Supply Risk |
316 |
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3 Supplier Risk |
316 |
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4 Supply Risk Management |
318 |
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5 Supplier Risk Management |
319 |
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6 Cases |
321 |
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7 Discussion and Conclusion |
325 |
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References |
326 |
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20 Categorizing Supply Chain Risks: Review, Integrated Typology and Future Research |
329 |
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1 Introduction |
329 |
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2 Defining Risk and Supply Chain Risk |
330 |
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2.1 An Overview of Supply Chain Risk Management (SCRM) Literature |
331 |
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2.2 Supply Chain Risk Identification |
332 |
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3 Research Methodology |
334 |
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4 Results |
334 |
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4.1 What Are the Most Influential Studies on the Topic of Supply Chain Risk Classification (RQ1) |
334 |
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4.2 How Has the Supply Chain Risk Classification Topic Developed Over Time? (RQ2) |
342 |
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4.3 What Are the Interactions Among Researchers that Contributed to the Topic of Supply Chain Risk Classification? (RQ3) |
346 |
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4.4 How Can Consensus Be Achieved Across the Supply Chain Risk Classification Studies Published Since 2000? (RQ4) |
349 |
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5 Conclusions |
356 |
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6 Limitations of the Study |
360 |
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7 Recommendations for Future Research |
360 |
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References |
361 |
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21 The Impact of Supply Chain Disruptions on Organizational Performance: A Literature Review |
367 |
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1 Introduction |
367 |
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2 Conceptualization of Supply Chain Risk Management |
368 |
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3 Research Methodology |
370 |
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4 The Effect of Supply Chain Disruptions on Supply Chain Performance |
370 |
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4.1 The Effect of Demand Disruption Risk on Supply Chain Performance |
371 |
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4.2 The Effect of Supply Disruption Risk on Supply Chain Performance |
372 |
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4.3 The Effect of Environmental Disruption Risk on Supply Chain Performance |
372 |
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4.4 The Effect of Control Disruption Risk on Supply Chain Performance |
373 |
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4.5 General Studies in Supply Chain Risk Management |
373 |
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4.6 Comparing the Effect of Different Sources of Risks on Supply Chain Performance |
374 |
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5 Supply Chain Disruption Risk Management: Major Themes |
378 |
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5.1 Conceptualizations of Supply Chain Risk Management |
378 |
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5.2 Impact of Supply Chain Disruptions on Organizational Performance |
379 |
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6 Supply Chain Resiliency Enhancers |
380 |
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7 Supply Chain Resiliency Enhancers: Major Findings |
383 |
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7.1 Flexibility |
383 |
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7.2 Agility |
383 |
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7.3 Collaboration |
384 |
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7.4 Redundancy |
384 |
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8 Conclusion |
385 |
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References |
386 |
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Grounding Our Understanding of Supply Chain Risk: Cases and Observations |
390 |
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22 The Management of Disruption Supply Risks at Vestas Wind Systems |
391 |
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1 Introduction |
391 |
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2 Vestas and the Wind Turbine Industry |
392 |
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3 The Management of Disruption Supply Risk |
392 |
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3.1 Disruption Risk Management Strategies |
393 |
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3.2 The Variety of Disruption Risks and the Strategies for Managing Them |
394 |
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4 Disruption Risk Management at Vestas |
395 |
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4.1 Gearboxes |
396 |
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4.2 Towers |
397 |
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5 Electronics |
399 |
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5.1 Electronics Case—Earthquake Damages to a Key Supplier’s Production Facility |
400 |
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5.2 How These Experiences Led to Changes in Electronics Disruption Management |
401 |
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6 A Framework for Disruption Risk Management |
402 |
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7 Conclusion |
403 |
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References |
404 |
|
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23 Foreign Exchange Risk Mitigation Strategies in Global Sourcing: The Case of Vortice SPA |
405 |
|
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1 Introduction |
405 |
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2 Foreign Exchange Risk Mitigation Strategies |
406 |
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3 Mitigating Foreign Exchange Risk at Vortice Elettrosociali SpA |
407 |
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3.1 Background |
407 |
|
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3.2 FX Risk at Vortice |
407 |
|
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3.3 FX Risk Exposure Analysis |
408 |
|
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3.4 FX Risk Mitigation Strategies |
409 |
|
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3.5 The Role of Functional Involvement |
414 |
|
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4 Conclusions |
415 |
|
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References |
416 |
|
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24 The Paradox of Risk Management: A Supply Management Practice Perspective |
418 |
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1 Introduction |
418 |
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2 Supply Management Process |
419 |
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3 Supply Risk Management |
419 |
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3.1 Risk Identification |
420 |
|
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3.2 Risk Assessment |
420 |
|
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3.3 Risk Mitigation or Treatment |
421 |
|
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4 Case Study Methodology and the Single-Case Design |
421 |
|
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4.1 Empirical Setting |
422 |
|
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4.2 Data Sources |
422 |
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4.3 Data Analysis |
423 |
|
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5 Supply Management Process in the Case Organization |
424 |
|
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5.1 New Supplier Selection |
424 |
|
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5.2 Strategic Sourcing |
425 |
|
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5.3 Receiving and Inspecting the Delivered Goods |
425 |
|
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5.4 Managing the Portfolio of Existing Suppliers |
425 |
|
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6 Supply Risk Management in the Case Organization |
426 |
|
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6.1 Financial Risk |
426 |
|
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6.2 Sourcing Risk |
428 |
|
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6.3 Performance Risk |
428 |
|
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6.4 Sustainability Risk |
429 |
|
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7 Discussion |
429 |
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7.1 How Are Risks Managed (i.e., Identified, Assessed and Mitigated) Inside a Large Global Organization? |
429 |
|
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7.2 Why May Risk Management in Practice Differ from the Theory and Widely Accepted Standards? |
431 |
|
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8 Conclusions and Future Research Directions |
432 |
|
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References |
432 |
|
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25 Risk in Complex Supply Chains, Networks and Systems |
435 |
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1 Introduction |
435 |
|
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2 Examples of Complex Supply Networks and Systems |
436 |
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2.1 Example A: Humanitarian Aid Supply |
437 |
|
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2.2 Example 2: Government Procurement |
440 |
|
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2.3 Example 3: Healthcare Supply Networks |
442 |
|
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3 A Synthesis of Risks and Their Mitigation in Complex Supply Networks and Systems |
445 |
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3.1 Supply Network Orchestration Risk |
445 |
|
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3.2 Supply Network Learning Risk |
445 |
|
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3.3 Supply Network Innovation Risk |
446 |
|
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3.4 An Initial Conceptual Framework for Risk in Complex Supply Networks and Systems |
446 |
|
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4 Reflecting on Theories |
447 |
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5 Summary |
448 |
|
|
References |
448 |
|
|
26 Surfing the Tides of Political Tumult: Supply Chain Risk Management in an Age of Governmental Turbulence |
452 |
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1 Introduction |
452 |
|
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2 Supply Chain Risk from Government Actions that Damage the Trade Environment |
453 |
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3 Omission or Inadequacy of Government Action as a Source of Supply Chain Risk |
455 |
|
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4 Supply Chain Risk from Outside the Central Government |
456 |
|
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5 Managing the Risk |
457 |
|
|
References |
459 |
|
|
Index |
460 |
|