Cooperating Emergency Strategies between Enterprises under Supply Chain Disruptions

摘要

Different from operational risks, supply chain disruptions are Low Probability -High Consequence (LP-HC) risks. Based on the sources of risks in supply chain, disruptions can be classified into three types - Supply Interruption, Operation Interruption and Demands Upheaval. The paper presents horizontal and vertical cooperation emergency mechanisms between enterprises, and discusses emergency strategies respectively under the three types of disruption. After comparing cooperating emergency strategies with traditional independent strategies, this paper puts forward a rational framework of disruption emergency strategy. Horizontal cooperation is more effective when supply or operation interruption disruptions take place, and vertical cooperation is more effective when demands upheaval disruptions take place.