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Advances in Social Sciences Research Journal – Vol. 10, No. 2

Publication Date: February 25, 2023

DOI:10.14738/assrj.102.13886. Ozgur, C., Fedor, K., & Michel, E. (2023). The Effect of Supply Chain Disruptions on Business Post COVID. Advances in Social Sciences

Research Journal, 10(2). 117-127.

Services for Science and Education – United Kingdom

The Effect of Supply Chain Disruptions on Business Post COVID

Ceyhun Ozgur

College of Business, Valparaiso University

Katia Fedor

College of Business, Valparaiso University

Evan Michel

College of Business, Valparaiso University

ABSTRACT

There are many reasons for experiencing supply chain disruptions. The reasons

could be miscommunication between the factory and the warehouse,

miscommunication between the warehouse and the stores, or miscommunication

between the stores and the customers. We investigated these possible disruptions

throughout this paper with the help of a questionnaire. We further investigated the

effect of various problems that may occur with the company stock which resulted in

supply chain disruptions. There have been many papers written about the effect of

the disruptions regarding these problems. With the goal of finding out the tactical

approach from the company affects the value of the stock, we investigated this

further. Additionally, this paper examined the nature of the tactical standings of the

company and the effects on supply chain disruptions and the position of the

company stock. Based on the responses to the questionnaire, we found how the

tactical elements affect the supply chain disruptions. We also showed the effect of

the supply chain disruptions on the company stock

Keywords: supply chain management, supply chain disruptions, disruptions due to

inventory, disruptions due to miscommunication between factory and warehouse,

disruptions due to miscommunication between warehouse and store, disruptions due to

miscommunication between store and customer, Supply Chain Disruptions post COVID19

INTRODUCTION

This paper looks at the effects of how disruptions affect the firm and their position in the stock

market. We will also discuss how the tactical elements of supply chain affects the wellbeing of

the company in terms of their position in the stock market. “A Supply Chain Disruption is an

unplanned and unanticipated event that disrupts the normal flow of goods and materials

within an entire supply chain” (WGA Consulting, 2017). Because supply chain disruptions are

occurring more frequently and with greater intensity, supply chain disruptions are on a

continual increase. A supply chain disruption begins with one simple mistake or issue that

continues to affect the product, its assembly, testing the product, and shipping the product

(Gurman, M., Wu, D., & Bloomberg, 2020). In this part of the paper, we show how supply chain

processes effect the cost, procurement, logistics, managing returns and risks, and creating an

effective supply chain (Stevenson, 2017).

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Advances in Social Sciences Research Journal (ASSRJ) Vol. 10, Issue 2, February-2023

Services for Science and Education – United Kingdom

Figure 1. The map of Supply Chain Risk Management Program

There are many factors that weigh into how supply chain disruptions occur. Supply chain risk

is shown above in figure 1. Some of these factors include timing, cost, product type, possible

risk of a supply chain disruption because of excess inventory or lack of inventory (Luthy, J.,

2018). Supply chain risk management is when trying to control risks by being able to legislate

the proper requirements to comply voluntarily with the environmental risks while satisfying

customers’ requirements and choices.

Figure 2. Supply Chain Risk Management Framework.

In figure 2, many aspects of supply chain are shown from understanding the supply chain to

collaborative planning. Supply chain risk is shown toward the bottom of the figure. This figure

shows how supply chains can be reengineered in an agile environment. We tried to show how

supply chains can be planned collaboratively, with the help of a team. Supply chain can be

further demonstrated with the team in the context of managing risk.

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Ozgur, C., Fedor, K., & Michel, E. (2023). The Effect of Supply Chain Disruptions on Business Post COVID. Advances in Social Sciences Research

Journal, 10(2). 117-127.

URL: http://dx.doi.org/10.14738/assrj.102.13886

Figure 3. Effect of Average Tardiness on Supply Chain Disruptions and Cost.

In this paper, we also try to control how disruptions affect the position of the firm with respect

to inventory. We will try to show how disruptions affect the position of the company with

respect to the stock market. We also try to show how average tardiness affects the supply chain

disruptions with respect to the cost of the supply chain. As shown in figure 3, we illustrate how

average tardiness affects the supply chain disruptions and cost. For example, as illustrated in

figure 3, if there is an increased cost the outcome of the supply chain may be affected by

increasing the amount of time before the cost returns to normal for the supply chain. The

average tardiness affects the supply chain cost due to shifting it from the normal supply chain

cost, as shown in the example below.

A machine shop produces customized machinery for the aerospace industry. A particular

machine has the following six jobs waiting to be processed.

Table 1. Original Machine Processing Time with Due Dates.

Job Due Date Processing Time (Days)

A 28 5

B 15 7

C 19 3

D 10 8

E 20 6

F 25 4

We should create a table according to the earliest due date sequence. This sequence is shown

in the table below.

N