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Uncertainty and Risk in Global Supply Chains


Donald R. Lessard


Massachusetts Institute of Technology (MIT) - Sloan School of Management

March 27, 2013

MIT Sloan Research Paper No. 4991-13

Abstract:     
This chapter explores the uncertainties associated with today’s highly interdependent supply chains and the risks inherent their geographic dispersion and organizational fragmentation. It first lays out the sources of risk and their potential consequences to the corporations who are supply chain owners, orchestrators, or customers; workers engaged in the global production system; entrepreneurs and larger firms who comprise the supply chains; and the regions and nations whose workers and firms make up the supply chain. It then considers how these risks can be mitigated and/or assigned to various parties in line with their comparative advantage. It concludes with a discussion of which risks are likely to be relatively well managed through the self-interest of the affected parties and which require concerted action across classes of actors.

Number of Pages in PDF File: 41

Keywords: Global supply chains, global value chains, supply chain risk

JEL Classification: D81

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Date posted: March 27, 2013  

Suggested Citation

Lessard, Donald R., Uncertainty and Risk in Global Supply Chains (March 27, 2013). MIT Sloan Research Paper No. 4991-13. Available at SSRN: http://ssrn.com/abstract=2240274 or http://dx.doi.org/10.2139/ssrn.2240274

Contact Information

Donald R. Lessard (Contact Author)
Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )
100 Main Street
E62-460
Cambridge, MA 02142
United States
617-253-6688 (Phone)
617-258-6617 (Fax)
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