We develop a model and analysis to provide insight into two effective remedies to increase supply chain resilience: (1) contracting with a secondary flexible backup supplier, and (2) monitoring primary suppliers to obtain disruption risk information. To investigate the true value of these...

We study a retailer selling perishable products with fixed lifetime. Retailer's supply system is subject to random disruptions. Assuming a base-stock policy, deterministic demand and stationary parameters, we derive an expression for the expected cost function which consists of holding,...

This paper studies multi-tier supply chain networks in the presence of disruption risk. Firms decide how to source their inputs from upstream suppliers so as to maximize their expected profits, and prices of intermediate goods are set so that markets clear. We provide an explicit...