Market disruptions in supply chains: a review of operational models

Abstract Market disruptions are unplanned and unanticipated events, which may further influence the flow of goods and materials within a supply chain. In view of the increasing significance of market disruptions in industries, in this paper, we review a selection of related papers that focus on market disruptions in the supply chain. We classify the literature into three aspects, namely, demand disruption, supply disruption, and supply chain disruption risk. We review the representative operational models in each aspect. We derive insights into the current state of knowledge in each area. We suggest three future research directions: (a) Can supply chain structure help reduce disruption risk? (b) How does information asymmetry influence the supply chain in the presence of disruption? (c) How does social welfare vary in the presence of disruption? In conclusion, this paper provides up‐to‐date information to both researchers and practitioners to better identify, manage, and control market disruptions.