The research on contingency plan and countermeasures of supply chain disruptions

Abstract

With the circumstances that emergencies happen more frequently and supply chain uncertainty increases, this paper researches that how does supply chain resume production quickly in supply disruption and keep the competitive advantages of the whole supply chain network. This research fills the theory of supply disruption management, meanwhile, constructs and perfects the contingency plan in supply disruption, regarding the four-echelon supply chain as research subject, assuming that supply disruption caused by force majeure. It analyzes the contingency plan model for two situations. One is single-supplier disruption; the other is multiple-supplier disruption. This paper also demonstrates the significance of supply disruption management, especially in cost control and proposes the countermeasure to solve that problem.