臺大管理論叢 NTU Management Review VOL.29 NO.1

Post-Disaster Grain Supply Chain Management with Supplier Hoarding and Regime Intervention 28 2. Literature Review To mitigate risk of disruption in the industrial supply chain, several pioneering researchers provided numerous viewpoints on this issue (Kleindorfer and Saad, 2005; Schmitt and Snyder, 2012; Tang, 2006). This study primarily reviews the following literature: disruptions in grain supply chain; reduction or contingency strategies for supply chain resilience; regime intervention in the grain supply chain and markets. According to Jaffee, Siegel, and Andrews (2010), the major stages for grain supply chain include supply, production, processing, import and export of grain-food, and domestic grain-food logistics. The members of grain supply chain (including farmers and firms) suffer various risks which are divided into eight types: weather-related risks, natural disasters (including severe weather crisis), biological and environmental risks, market- related risks, logistical and infrastructural risks, managerial and operational risks, public policy and institutional risks, and political risks. Similarly, Holst, Yu, and Grün (2013) proposed two main types of uncertainties derived from provincial agricultural supply fluctuation and explored how disruptions are uncertainties of climate change and natural disasters. Moreover, some kinds of agriculture production are perishable, like vegetables and fruits, which require appropriate temperatures for maintaining the production quality. Cai and Zhou (2014) claimed that the risk of decay has become more challenging to manage for members of the supply chain. Kleindorfer and Saad (2005) argued that the principles for the management of uncertainties disrupting supply chains are the following: identifying sources of risk and susceptibility, risk evaluation, and reduction. Tomlin (2006) classified two types of strategies to alleviate uncertainties disrupting supply chains, including reduction and contingency strategies. Reduction strategies include having various outside suppliers and investing in a recovery inventory before a supply chain disruption. On the other hand, contingency strategies define the measures of requirements for management after a disruption happens. Consumer demand provides an incentive for a contracted supplier to enlarge supplier capacity as long as the supply chain disrupted (Hu, Gurnani, and Wang, 2013). To prepare for disruption uncertainties, the ability to recover quickly and a reduced lead time are essential in aiding with inventory investment. (Ramasesh, Ord, Hayya, and Pan, 1991; Tomlin, 2006; Jain, Girotra, and Netessine, 2013). Dual or multiple sourcing is an effective mitigation tactic. Dual sourcing is typically used to diversify supply as a buffer against disruption by sourcing from two suppliers: a less costly and unsteady