Contingency Planning For Major Disruptions

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Contingency Planning Contingency planning is the anticipation of what may happen, combined with the allocation of resources, and is assumed to maximize the chances of a successful response in time of crisis; however does not guarantee successful response (Eriksson & McConnell, 2011). Glendon (2013) presents contingency planning as a layer of a three-line defense termed the three Cs (3Cs) of business continuity: contingency planning, continuity capability, crisis response. Contingency planning is a provision for an event that is possible but cannot be predicted with certainty. He also considers the application of the 3Cs in the entertainment industry and banking, highlighting the need for the business continuity professional support within the organization.
Nejad, Noroomand and Kuzgunkaya (2014) discuss a contingency rerouting known as a cost-effective risk management strategy for major disruptions. The authors propose a mixed integer programming-based capacity planning tool to generate the contingency plan of the supply chain during disruptions, considering response time and congestion, especially critical when dealing with disruptions. This is in reference to the last decade disasters that affected the several supply chains for instance the Japan tsunami in 2011, September 11, 2001, to name a few. Contingency rerouting is applied to improve supply chain responsiveness to major disruptions (Nejad et al., 2014).
Contingency planning is not a recipe for guaranteeing
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