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The Power of ResilienceHow the Best Companies Manage the Unexpected$
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Yossi Sheffi

Print publication date: 2015

Print ISBN-13: 9780262029797

Published to MIT Press Scholarship Online: May 2016

DOI: 10.7551/mitpress/9780262029797.001.0001

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Reducing the White-Space

Reducing the White-Space

Chapter:
(p.53) 3 Reducing the White-Space
Source:
The Power of Resilience
Author(s):

Yossi Sheffi

Publisher:
The MIT Press
DOI:10.7551/mitpress/9780262029797.003.0003

The 2011 Japanese quake affected many companies and illustrates the growing problem with deep-tier supply chain disruptions in which the suppliers of suppliers are affected. Chapter 3 examines GM’s handling of the Japan crisis and the management of what GM calls “white-space”—the gap in parts supply left between pre-disruption inventories in the supply chain and the post-recovery refilling of the chain. The white-space conceptual framework allows companies to estimate a value-at-risk from various types of disruptions and to prioritize prevention and preparation initiatives.

Keywords:   Deep-tier supply chain, Inventory, Value-at-Risk, Time-to-Impact, Time-to-Recovery, Prevention, Allocation, GM (General Motors), Flextronics

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