Alternative management strategies for improving the resilience of supply chainssystems, especially where a core-periphery structure exists, is by diversifyingexchanges beyond the core set of hub firms, or by linking to an intermediary firm that connects hub firms. This is reasoned because Song et al. (2006) have shown thatscale-free networks formed by fractal mechanisms (e.g. networks of biological systems),show greater resilience against cascading failures than the non-fractal BA model. Theimproved resilience in fractal networks is derived from hub nodes being repulsed fromeach other, thus reducing the likelihood of damage from a hub node cascadingimmediately to other hub nodes. However, while these particular managerial strategiesare likely to improve resilience, they are also likely to increase the characteristic pathlength of the supply chain network. Hence, there is a trade-off between resilience andefficiency (Brede and de Vries, 2009).
Alternative management strategies for improving the resilience of supply chains<br>systems, especially where a core-periphery structure exists, is by diversifying<br>exchanges beyond the core set of hub firms, or by linking to an intermediary firm that connects hub firms. This is reasoned because Song et al. (2006) have shown that<br>scale-free networks formed by fractal mechanisms (e.g. networks of biological systems),<br>show greater resilience against cascading failures than the non-fractal BA model. The<br>improved resilience in fractal networks is derived from hub nodes being repulsed from<br>each other, thus reducing the likelihood of damage from a hub node cascading<br>immediately to other hub nodes. However, while these particular managerial strategies<br>are likely to improve resilience, they are also likely to increase the characteristic path<br>length of the supply chain network. Hence, there is a trade-off between resilience and<br>efficiency (Brede and de Vries, 2009).
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