Theoretical Framework of Supply Chain Uncertainties

Abstract

The increasing complexity of multinational supply networks has generated a new issue (supply chain uncertainty) for today's managers. This article surveys the existing literature on the topic of supply chain uncertainty and establishes the theoretical framework for future study in this area (in addition to supply chain risk). This literature study identifies fourteen potential causes of uncertainty, including both well-studied phenomena like the bullwhip effect and less well-known ones like parallel interaction. Ten solutions try to eliminate the core source of uncertainty, while eleven others aim to adapt to the existence of these unknowns in order to reduce their effects on manufacturing performance. The theory of manufacturing strategy and core concept of contingency and alignment establish a foundation of the supply chain uncertainty framework that is thus establishment using the research findings. More future empirical study is required to discover which uncertainty exists in distinct industrial settings, the effect of suitable sources and management strategies on productivity, and the intricate interaction between management techniques and diverse uncertainty sources.