Enterprise IT service downtime cost and risk transfer in a supply chain

Wang, Shaun S.1,2; Franke, Ulrik3

2020-02-21

10.1007/s12063-020-00148-x

Operations Management Research   影响因子和分区

1936-9735

1936-9743

In this paper we present an economic model for analyzing enterprise IT service downtime cost, first on a standalone basis and then in a supply chain setting. With a baseline probability model of Poisson arrival frequency with random downtime duration, we analyze optimal production of a firm's investments in reducing frequency and duration of downtime, and corresponding premiums for insuring against downtime cost. We also present a model for the spillover effect of downtime for interconnected firms in a supply chain, and discuss how third-party insurance coverage can help enterprises to internalize the externalities of spillover effects on the supply chain.

Enterprise IT service Downtime cost Supply chain

SSCI

英语

其他

Business & Economics

Management

WOS:000516480600001

SPRINGER

Web of Science

1.Nanyang Technol Univ, Insurance Risk & Finance Res Ctr, Nanyang Business Sch, 50 Nanyang Ave, Singapore 639798, Singapore
2.Southern Univ Sci & Technol, Dept Finance, Shenzhen, Guangdong, Peoples R China
3.RISE Res Inst Sweden, POB 1263, SE-16429 Kista, Sweden

Wang, Shaun S.,Franke, Ulrik. Enterprise IT service downtime cost and risk transfer in a supply chain[J]. Operations Management Research,2020,13(1-2):94-108.

Wang, Shaun S.,&Franke, Ulrik.(2020).Enterprise IT service downtime cost and risk transfer in a supply chain.Operations Management Research,13(1-2),94-108.

Wang, Shaun S.,et al."Enterprise IT service downtime cost and risk transfer in a supply chain".Operations Management Research 13.1-2(2020):94-108.