Decision-Making for Supply Risk Mitigation Strategies

In order to build resilient supply chains and to manage supply disruptions, managers might implement supply chain risk mitigation strategies. These strategies fall into two opposing categories, i.e., buffer- and process-oriented risk mitigation strategies. Our research study tries to formulate decision-making rules for choosing among these risk mitigation strategies. More specifically, we test whether the choice for a mitigation strategy depends on risk perceptions, risk propensity of the decision maker and contextual factors. Our study shows that these risk characteristics influence the amount of risk mitigation strategies taken, as well as the preference towards a specific riskmitigation strategy.