Facilitating Vulnerable Supplier Network Management Using Bicriterion Network Resilience Management Approach  
[PERSON]  
1 School of Business, Sejong University, Seoul 05006, Korea; [EMAIL_ADDRESS]  
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[PERSON]  
Thus, today's risk management approach must contain a competitive ex-ante mechanism in identifying vulnerable suppliers in anticipation of disruption. That is, the success of risk management depends on how well the supply network is equipped with a managerial decision-making approach in measuring and managing SC vulnerability [10]. For example, when SC is equipped with successful risk management strategies and vulnerability controls (i.e., limited resource, lead-time pressure), SC as a whole is able to cope with and quickly respond to disruption with a competitive level of SC capabilities [19; 20; 21]. To achieve SC resilience, SC disruption awareness alone is not enough and that it requires the firm's resource reconfiguration capabilities and a firm's risk management infrastructure to identify and monitor SC vulnerability [21]. Risk identification is the \"first and the most important\" stage of the risk management and it should be carried out for each the SC elements such as suppliers, manufacturers, warehouses, distribution channels [17]. Especially in the competing market, a direct competitor of a buying firm may force a supplier, that is vertically integrated by a direct competitor, to terminate the ongoing relationship with the buying firm to increase vulnerability [22]. In response to a recent political dispute or an economic trade war between Japan and Korea, South Korea chipmakers identified a risk in supply dependency of specific chemicals (photoresists, hydrogen fluoride, fluorinated polyimides) and recognized the value of collaborating with multiple suppliers rather than a single supplier [23]. The chipmakers have begun to diversify sourcing network in China and Taiwan as an effort to build a resilient supply network system rather than being reliant on Japanese suppliers. With recent trends of globalization, e-trade, advanced technology, and emerging production techniques supply networks are becoming more fragile and vulnerable to risks [17]. Thus, the risk identification process has gained academic attention in the form of strategic supplier management approaches: Bayesian network to identify a supplier with a higher likelihood of separation from a disaster zone [24], multiple sourcing strategy which initially identifies the level of supplier dependency proposes an optimal sourcing diversification [25; 26], and optimal order quantity allocation which identifies the level of required emergency inventory using mixed integer programming [27]. Despite the on-going scholarly efforts in designing and planning a resilient supply network that can withstand disruptions, the following questions are still needed to be answered in this field. First, the dynamic capability management approach lacks the inclusion of network structural relationship perspective and practical design and planning of resilient supply chains. To date, various operations and supply chain management (OSCM) scholars have identified the key characteristics and drivers of SC resilience from a qualitative perspective. The characteristics of interconnected suppliers in a focal firm's supply chain network can directly and indirectly influence the network vulnerability [10]. [PERSON] et al. [28] identified agility, visibility, flexibility, collaboration, and information sharing as the key drivers that contribute to building SC resilience taxonomy from the quantitative perspective. [PERSON] et al. [3] identified situation awareness, robustness, knowledge management, security, visibility, flexibility, redundancy, collaboration, agility, contingency planning, market position, and social capital as core elements to SC resilience mapping framework based on literature review of 103 articles.