Review FIGURE 16.3 Supply chain mitigation framework.

This shows Company A and B starting from "business as usual" at ZERO IMPACT. Using Resilience, Agility and Recovery, both companies return to "business as usual" (e.g. points on the graph at "Recovery B2" and "Recovery A2", with B getting there quicker). Now discuss these two questions:

1. What are the two other possible ends states in terms of Business Impact following a disruption and recovery as shown? (e.g. the Y-axis, other than "business as usual") Which of the 3 would you prefer for your company (i.e., as printed or either of your 2)? Why?
2. Find a definition of resilience that supports your preferred end state and convince your fellow students that they should follow your suggested definition of resilience instead of what's printed in Figure 16.3.

Business as usual Business as usual mitigation framework. Source: APICS Magazine 22, no. 1 (January/February 2012). Recovering from a supply chain disruption Company A Resilience- Proactive supply chain risk mitigation Business impact (loss of revenue, profitability, or market share Agility- Early detection and quick response to minimize damage Recovery- Damage control through last line of defense: insurance cover Company B Effect of swift action plus effect of capacity and inventory buffers Effect of visibility systems T Discovery B1 Recovery B2 Recovery A2 Discovery A1 Time - Impact of supply chain disruption on organization A, which has no risk mitigation system Impact on organization B, which has mitigated supply chain risk and is continuously monitoring for disruptions