Supply chain redesign implications to information disruption impact

Over the years, supply chain reconfiguration decisions have been solely based on operational risk. Simplification strategies, such as horizontal mergers, and networking risk pooling, are conflicting paradigms that shown to improve financial performance of partners. The implication this disruption is not fully known, especially it concerns information security breach (ISB). Analysts rated ISB a huge risk, costing businesses millions dollars. Using credible well-established agent-based simulation approach statistical analysis, we examine impact simplification pooling strategies respectively under three different order replenishment systems. effect reconfiguring first examined in non-security scenario then breached scenario. We find has no benefit using parameter policy (option I), both non-breach situations, but leads significant advantage when batch ordering model II) or combined batch-and-parameter III) used. also established system favours strategy whereas counterpart at wholesaler tier. This study implications for design well priorities. one papers look how impacts configuration role decision context.