Disruption Management

This pioneering book addresses the latest research findings and application results on disruption management, which is the study of how to dynamically recover a predetermined operational plan when various disruptions prevent the original plan from being executed smoothly.

This volume discusses business disruptions as strategic to gain market competitiveness. It analyzes the convergence of innovation and technology, business practices, public policies, political ideologies, and consumer values to strengthen competitive business practices through disruptions. Bringing together contributions from global experts, the chapters add to knowledge on contemporary business models, business strategies, radical interventions in manufacturing, services, and marketing organizations. Disruptive innovations led by contemporary trends, tend to transform the market and consumers’ landscape. These trends include shifts from closed to open models of innovation, servitization, and moving from conventional manufacturing and marketing paradigms to industry 4.0 business philosophy. Focused on the triadic themes of disruption, innovation, and management in emerging markets, this book serves as a valuable compendium for research in entrepreneurship development, regional business and development, contemporary political ideologies, and changing social values.

This book is an essential guide or foundational toolkit for anyone who is involved in the process of developing, offering or selling any type of product or service. Based on how to surf on the waves of innovation and the principle of “form follows function” (System Architecture), it introduces and connects concepts like Market Understanding, Design Thinking, Design to Value, Modularization and Agility. It introduces readers to the essence of these main frameworks and provides a toolkit that explains both theoretically and practically when and how to utilize which one. The methods and processes described in this book have all been successfully tested in many industries. They apply in today’s market context of high uncertainty, complexity and turbulence, where innovation and disruption are essential. Readers will find answers to two fundamental questions: How can we implement an innovation process and environment that are conducive to successful product design? And, if our products fail to appeal to customers, how can we achieve a major turn-around with regard to product development? A wealth of examples and case studies help readers to benefit from the authors’ broad professional experience. Further, lessons learned and conceptual summaries provide valuable shortcuts to the methods and tools discussed. For today’s CEOs, enabling innovation is one of THE most complex leadership tasks. But innovation is not about theory and nice buzzwords. It’s about succeeding in the real world. This ‘hands-on’ book connects the dots and introduces the reader to some of the most relevant ideas and pragmatic concepts fitting today’s business reality. Dr. Robert Neuhauser, Executive VP and Global Head People and Leadership Development, Siemens At the most fundamental level this book brings order to chaos. It sets different and highly relevant design approaches into a complementary picture, rather than presenting them as competing ways of solving the same problem. Product designers, managers, consultants, scholars and students will surely have this valuable book within reach on a daily basis. Olivier L. de Weck, Ph.D – MIT Professor of Aeronautics and Astronautics and Engineering Systems, Editor-in-Chief Systems Engineering

This book deals with stochastic combinatorial optimization problems in supply chain disruption management, with a particular focus on management of disrupted flows in customer-driven supply chains. The problems are modeled using a scenario based stochastic mixed integer programming to address riskneutral, risk-averse and mean-risk decision-making in the presence of supply chain disruption risks. The book focuses on integrated disruption mitigation and recovery decision-making and innovative, computationally efficient multi-portfolio approach to supply chain disruption management, e.g., selection of primary and recovery supply portfolios, demand portfolios, capacity portfolios, etc. Numerous computational examples throughout the book, modeled in part on realworld supply chain disruption management problems, illustrate the material presented and provide managerial insights. Many propositions formulated in the book lead to a deep understanding of the properties of developed stochastic mixed integer programs and optimal solutions. In the computational examples, the proposed mathematical programming models are solved using an advanced algebraic modeling language such as AMPL and CPLEX, GUROBI and XPRESS solvers. The knowledge and tools provided in the book allow the reader to model and solve supply chain disruption management problems using commercially available software for mixed integer programming. Using the end-of chapter problems and exercises, the monograph can also be used as a textbook for an advanced course in supply chain risk management. After an introductory chapter, the book is then divided into six main parts. Part I addresses selection of a supply portfolio; Part II considers integrated selection of supply portfolio and scheduling; Part III looks at integrated, equitably efficient selection of supply portfolio and scheduling; Part IV examines integrated selection of primary and recovery supply and demand portfolios and production and inventory scheduling, Part V deals with selection of resilient supply portfolio in multitier supply chain networks; and Part VI addresses selection of cybersecurity safequards portfolio for disruption management of information flows in supply chains.

In this book, a risk management approach starts off by discussing important issues related to managing supply chain disruption risks from various perspectives during VUCA times. It explores the essence and principles relating to managing these risks and provides the framework and multi-goal model groups for managing such unknown-unknown risks and subsequent disruptions at a global scale. The book explores and presents the latest developments across different emerging topics in supply chain risk and disruption management. These include (i) an overview of supply chain risk, and disruption management tools, techniques, and approaches, (ii) a review on uncertainty modeling for decentralized supply chain systems, (iii) supply chain deep uncertainties and risks - the 'new normal', (iv) emergent technologies for supply chain risk and disruption management, (v) supply chain resilience strategies for times of unprecedented uncertainty, (vi) the role of blockchain in developing supply chain resilience against disruptions, (vii) a qualitative study on supply chain risk management adopting blockchain technology, (viii) assessment of risks and risk management for agriculture supply chain, (ix) resilience of agri-food supply chains: Australian developments after a decade of supply and demand shocks, (x) prioritization of risks in the pharmaceutical supply chains (xi) improving medical supply chain disruption management with the blockchain technology, and (xii) impacts of resilience practices on supply chain sustainability. The book contributes significantly to the growing body of knowledge concerning the theory and practice of managing supply chain risks and disruptions in strategic management, operations and supply chain, and sustainability literature. It presents contemporary, innovative and latest developments in applying smart management tools, techniques and approaches for managing supply chain risk and disruption and future-proofing supply chains to become agile, resilient and sustainable.

This book deals with stochastic combinatorial optimization problems in supply chain disruption management, with a particular focus on management of disrupted flows in customer-driven supply chains. The problems are modeled using a scenario based stochastic mixed integer programming to address risk-neutral, risk-averse and mean-risk decision-making in the presence of supply chain disruption risks. The book focuses on innovative, computationally efficient portfolio approaches to supply chain disruption management, e.g., selection of primary and recovery supply portfolios, demand portfolios, capacity portfolios, etc. Numerous computational examples throughout the book, modeled in part on real-world supply chain disruption management problems, illustrate the material presented and provide managerial insights. In the computational examples, the proposed mathematical programming models are solved using an advanced algebraic modeling language such as AMPL and CPLEX, GUROBI and XPRESS solvers. The knowledge and tools provided in the book allow the reader to model and solve supply chain disruption management problems using commercially available software for mixed integer programming. Using the end-of chapter problems and exercises, the monograph can also be used as a textbook for an advanced course in supply chain risk management. After an introductory chapter, the book is then divided into five main parts. Part I addresses selection of a supply portfolio; Part II considers integrated selection of supply portfolio and scheduling; Part III looks at integrated, equitably efficient selection of supply portfolio and scheduling; Part IV examines integrated selection of primary and recovery supply (and demand) portfolios and scheduling; and Part V addresses disruption management of information flows in supply chains.

Most of the research efforts dealing with airline scheduling have been done on off-line plan optimization. However, nowadays, with the increasingly complex and huge traffic at airports, the real challenge is how to react to unexpected events that may cause plan-disruptions, leading to flight delays. Moreover these disruptive events usually affect at least three different dimensions of the situation: the aircraft assigned to the flight, the crew assignment and often forgotten, the passengers’ journey and satisfaction. This book includes answers to this challenge and proposes the use of the Multi-agent System paradigm to rapidly compose a multi-faceted solution to the disruptive event taking into consideration possible preferences of those three key aspects of the problem. Negotiation protocols taking place between agents that are experts in solving the different problem dimensions, combination of different utility functions and not less important, the inclusion of the human in the automatic decision-making loop make MASDIMA, the system described in this book, well suited for real-life plan-disruption management applications.

Managing Supply Chain Disruptions categorizes and review the substantive research contributions relating to managing supply chain disruptions. With a primary emphasis on formulating directions for future research, the authors focus on significant research and practical findings. Managing Supply Chain Disruptions reviews the general area of supply chain disruptions and examine classifications of disruptions which can be used to provide insights into the disruption management process. It reviews the literature in the emerging field of disruption risk management which attempts to identify specific risks associated with supply chain disruptions. This is followed by a review of conceptual/empirical research with a focus on providing general insights into how one or more organizations have managed the risk associated with disruptions. Given that designing robust supply chain networks are a key feature of managing disruption risk, the authors examine the relevant research in this domain. A detailed analysis of prior research targeted at managing specific risks (e.g., product, supply, operations/process, and transportation risks) is presented, and finally, directions for future research are discussed.