Minimizing the ripple effect caused by operational risks in a make-to-order supply chain
International Journal of Physical Distribution & Logistics Management
ISSN: 0960-0035
Article publication date: 2 May 2020
Issue publication date: 6 July 2020
Abstract
Purpose
This paper aims to introduce a web-based pilot system for minimizing the ripple effect (i.e. spreading of the negative impact of an exceptional event along the supply chain from its original position) caused by operational risks in the context of make-to-order supply chains.
Design/methodology/approach
The study employs a design science research methodology, which covers three major stages: system requirements identification, business process design and the implementation and evaluation of a web-based pilot system.
Findings
The developed system has the potential to significantly reduce the negative impact of the ripple effect caused by operational risks in a make-to-order supply chain in terms of material shortages, late deliveries and subsequent additional costs associated with expediting measures when a customer order is running late.
Research limitations/implications
The system presented in this paper is a prototype that needs to be further developed and tested in the future.
Practical implications
This paper provides integrated business processes and useful guidelines for supply chain managers and information system developers in dealing with the ripple effect in the supply chain.
Originality/value
In contrast to prior studies that have focused on investigating the impact of the ripple effect on the supply chain caused by natural or man-made disasters, this research attempts to offer a novel approach to address the research problem (i.e. the ripple effect caused by operational risks such as delays) directly from the design science perspective.
Keywords
Citation
Xu, H. (2020), "Minimizing the ripple effect caused by operational risks in a make-to-order supply chain", International Journal of Physical Distribution & Logistics Management, Vol. 50 No. 4, pp. 381-402. https://doi.org/10.1108/IJPDLM-06-2018-0213
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited