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Reprinted from International
Journal of Logistics Management – May
2002
Abstract:
On the morning of September 11th, 2001, the
United States and the Western world entered into a new era
- one in which large scale terrorist acts are to be expected.
The impacts of the new era will challenge supply chain managers
to adjust relations with suppliers and customers, contend
with transportation difficulties and amend inventory management
strategies.
This paper looks at the twin corporate challenges
of (i) preparing to deal with the aftermath of terrorist
attacks and (ii) operating under heightened security. The
first challenge involves setting certain operational redundancies.
The second means less reliable lead times and less certain
demand scenarios. In addition, the paper looks at how companies
should organize to meet those challenges efficiently and
suggests a new public-private partnership. While the paper
is focused on the US, it has worldwide implications.
About the Author:
Yossi Sheffi is a Professor at the Massachusetts
Institute of Technology where he leads the School of Engineering's
Center
for Transportation Studies as well as the newly launched
Masters
of Engineering in Logistics program. He received his
Ph.D. from MIT and is an expert on logistics and supply
chain management, carrier management, and electronic commerce.
Dr. Sheffi is the author of a textbook and over 50 technical
publications. He also founded five successful software,
logistics and electronic commerce companies. In 1997, Dr.
Sheffi was awarded the Council of Logistics Management's
Distinguished Service Award.
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