Supply Chain Risks, Disruptions, and Ripple Effect

This chapter is devoted to risk management in the supply chain. The chapter starts with fundamental definitions of uncertainty and risks. Subsequently, disruption risk classifications are presented. Decisions in the scope of supply chain disruption risk management are discussed. The special focus is directed toward disruption risks and the ripple effect in supply chains. The concepts of disruption overlays and disruption tails are explained. Finally, pandemics as a specific type of supply chain disruptions (i.e., a super disruption) are considered using the example of the coronavirus (COVID-19/SARS-CoV-2) outbreak.