The Impact of Severe Weather and Climate Change on Lean Supply Chains

초록

This study examines the impact of severe weather on lean supply chains. First, this paper reviewed the literature on the disruptions and damages that severe weather events cause on supply chain. Then, several recent examples of lean supply chain disruptions due to severe weather were discussed. The results of the study indicated that the frequency of weather related disasters is increasing and extreme weather events will increase potential risks to supply chains. First, building organizational resilience will help firms look beyond efficiency and profits in managing lean supply chains. Second, the concept of sole sourcing may need rethinking to maintain a supply chain that is lean and resilient. Third, organizations must plan ahead for supply chains in unpredictable weather. Fifth, communication is a key for anticipating and avoiding the impact of severe weather. This study proposes of a set of strategies, both theoretical and practical, that business firms should develop to effectively prevent and respond to severe weather related disruptions in lean supply chains.

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