Mitigating Supply Chain Risks Through Diversified Sourcing Strategies in Manufacturing

Authors: Haroon Rashid

DOI: https://doi.org/10.5281/zenodo.14280019

Short DOI: https://doi.org/g8ttff

Country: Dubai, UAE

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Abstract: The complexity of modern supply chains exposes manufacturing firms to significant risks, which can result in supply chain disruptions. To mitigate these risks, diversified sourcing strategies have been adopted. This study develops a diversified sourcing strategy using a two-level supply network. Results indicate that manufacturing flexibility and reduced lead times are critical for designing resilient sourcing strategies. The study presents key benefits of diversified sourcing in enhancing system resilience and mitigating risks associated with single-vendor sourcing, drawing on empirical data and simulation models. In addition, the study includes a survey of sizable manufacturing plants in the major geographies. This work highlights successful implementation strategies, case studies, and future trends in diversified sourcing.

Keywords: Supply chain risk management, diversified sourcing, risk mitigation strategy, simulation model.

Paper Id: 231729

Published On: 2020-01-02

Published In: Volume 8, Issue 1, January-February 2020

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