With the extensive use of outsourcing and more frequent technological innovations, global supply chains become vastly stretched and dynamic networks. As a result, firms face increasingly significant challenges to managing their fragile supply networks and responding to more rapidly changing demand evolutions. In this dissertation, we analyze three aspects of these challenges and summarize the findings in three essays. The first essay considers firms' problem of managing social and environmental non-compliance risk at its sub-tier suppliers. We figure out under what circumstances the firms should delegate the sub-tier supplier non-compliance management to its direct suppliers and under what directly control. In the second essay, we analyze the firm's strategy to deal with random demand surges. We develop a new demand model that captures important non-Markov characteristics of possible random demand surge trajectories and derive the optimal safety stock and reactive capacity strategy. Eventually, we establish a useful framework for supply chain planning under a variety of surge demand characteristics (e.g., frequency, intensity, duration, and shape). In the third essay, we examine a dynamic customer-base management problem for a firm with finite capacity, when its customers are prone to disruption and retention risks. We show that the optimal base size is an adding-up-to policy and derive the firm's optimal capacity allocation policy when capacity shortage occurs. In summary, our studies in this dissertation provide useful modeling ideas, decision tools, insights, and guidance for firms to build up resilient supply chains from both the supply and demand sides.
展开▼
