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Chinese Journal of Management Science ›› 2024, Vol. 32 ›› Issue (9): 93-100.doi: 10.16381/j.cnki.issn1003-207x.2021.2339

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Supply-Chain Reconfiguration Strategy under the Risk of Emergencies

Lean Yu1,2,3,4,Danping Wang2,Nengmin Zeng3,4()   

  1. 1.Business School, Sichuan University, Chengdu 610065, China
    2.School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
    3.School of Economics and Management, Harbin Engineering University, Harbin 150001, China
    4.Key Laboratory Ministry of Industry and Information Technology (Harbin Engineering University), Harbin 150001, China
  • Received:2021-11-11 Revised:2023-02-10 Online:2024-09-25 Published:2024-10-12
  • Contact: Nengmin Zeng E-mail:zengnengmin@126.com

Abstract:

The outbreak of emergencies has severely affected the operation of the supply chain and the business activities of enterprises. The supply chain reconfiguration strategy is studied under the risk of emergencies, and a supply chain decision model is constructed with supply and demand interruptions under emergencies. The model considers that a manufacturer needs to purchase a core component from a main supplier to meet the offline market demand; after the outbreak of emergencies, in order to deal with the supply interruption of the main supplier and the sales stagnation in the offline market, the manufacturer can put in a cost to implement the supply chain reconfiguration - start the backup purchase (i.e., make an urgent purchase of components to a backup supplier not affected by emergencies) and carry out online sales business, in which the unit production cost of the backup supplier is higher than that of the main supplier, and it is necessary to reserve production capacity through a deposit to ensure the progress of backup procurement. The results show that under the risk of emergencies, when there is a threshold below which the online market potential is lower, the manufacturer will not reconstruct its own supply chain, otherwise, the manufacturer will reconstruct the supply chain by reserving the capacity of backup procurement to backup suppliers and opening up online sales channels for products. The threshold is a function of the risk of emergencies, the cost of backup production, and the predetermined price per unit of capacity.Moreover, the interval for manufacturers to implement supply chain restructuring is enlarged with the increase of the risk of emergencies, and then reduced with the increase of procurement cost and capacity reservation price. A priori, overbooking always occurs when a manufacturer books capacity with a backup supplier.When the manufacturer implements supply chain reconfiguration, if the risk of emergencies outbreak is small, the cost of capacity reservation is higher than the expected cost of backup procurement, that is, the backup supplier gains additional benefits through the manufacturer's capacity overbooking; otherwise, the cost of capacity reservation is lower than the expected cost of backup procurement, that is, the manufacturer will not suffer losses due to capacity overbooking.

Key words: supply chain reconfiguration, emergencies, supply disruption, demand disruption

CLC Number: