Teaching Operational Flexibility for Mitigating Risk in Global Supply Chains
Otso A. Massala, Robert O. Neidigh, and Ian M. Langella
Shippensburg University, USA
Volume 14: 2020, pp. 87-112; ABSTRACT
Globalization has resulted in supply chains that are geographically dispersed and therefore vulnerable to supply chain risk. Operational flexibility can be used to mitigate this risk by reacting to abrupt changes in the operational environment. This paper proposes an experiential learning activity using a linear programming model of a fictitious global supply chain. Linear programming models of increasing complexity are used to show students how mathematical models can be used to plan the flow of material in real-world global supply chains. Through experimentation with the models, students are afforded a realistic look at risk in international supply chains, and how operational flexibility can deal with this risk by effectively reacting to dynamic changes in the operating environment. This contribution also reports empirical evidence indicating that student comprehension of supply chain risk and its mitigation with operational flexibility was enhanced in college-level educational settings.
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