Abstract Different from operational risks, supply chain disruptions are Low ProbabilityHigh Consequence (LP-HC) risks. Based on the sources of risks in supply chains, disruptions are classified into three different categories: Supply Breaking Off, Operation Breaking Off and Demands Upheaval. Then, the paper examines horizontal and vertical cooperation emergency mechanisms among enterprises, and discusses emergency strategies respectively under the three disruption categories. After comparing cooperating emergency strategies with traditional strategies, this paper puts forward a rational framework of disruption emergency strategy: horizontal cooperation is more effective when supply or operation breaking off disruptions occur; and vertical cooperation is more effective when demands upheaval disruptions occur.
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Received: 12 October 2010
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Corresponding Authors:
ZHANG Ning
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