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A Quantitative Model for Analyzing Market Response During Supply Chain Disruptions

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Supply Chain Risk Management

Abstract

Supply chain disruptions can lead to firms losing customers and consequently losing profit. We consider a firm facing a supply chain disruption due to which it is unable to deliver products for a certain period of time. When the firm is restored, each customer may choose to return to the firm immediately, with or without backorders, or may purchase from other firms. This chapter develops a quantitative model of the different customer behaviors in such a scenario and analytically interprets the impact of these behaviors on the firm’s post-disruption performance. The model is applied to an illustrative example.

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Author information

Authors and Affiliations

  1. Department of Industrial and Manufacturing Systems Engineering, Iowa State University, Ames, USA

    Arun Vinayak & Cameron A. Mackenzie

Authors
  1. Arun Vinayak
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  2. Cameron A. Mackenzie
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Corresponding author

Correspondence to Arun Vinayak .

Editor information

Editors and Affiliations

  1. Graduate Program in Business and Development Studies, Sophia University, Tokyo, Japan

    Yacob Khojasteh

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Vinayak, A., Mackenzie, C.A. (2018). A Quantitative Model for Analyzing Market Response During Supply Chain Disruptions. In: Khojasteh, Y. (eds) Supply Chain Risk Management. Springer, Singapore. https://doi.org/10.1007/978-981-10-4106-8_9

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