Dual sourcing: Responsive hedging against correlated supply and demand uncertainty

This article analyzes dual sourcing decisions under stochastically dependent supply and demand uncertainty. A manufacturer faces the trade‐off between investing in unreliable but high‐margin offshore supply and in reliable but low‐margin local supply, where the latter allows for production that is responsively contingent on the actual demand and offshore supply conditions. Cost thresholds for both types of supply determine the optimal resource allocation: single offshore sourcing, single responsive sourcing, or dual sourcing. Relying on the concept of concordance orders, we study the effects of correlation between supply and demand uncertainty. Adding offshore supply to the sourcing portfolio becomes more favorable under positive correlation, since offshore supply is likely to satisfy demand when needed. Selecting responsive capacity under correlated supply and demand uncertainty is not as straightforward, yet we establish the managerially relevant conditions under which responsive capacity either gains or loses in importance. Our key results are extended to the broad class of endogenous supply uncertainty developed by Dada et al. [Manufact Serv Operat Mange 9 (2007), 9–32].© 2012 Wiley Periodicals, Inc. Naval Research Logistics, 2012     

CREATING SUNS ON EARTH

Concerns about climate change and energy security have prompted some countries to revive dormant nuclear fission power programs to meet growing energy demands and reduce carbon dioxide emissions. However, this so-called nuclear renaissance based on fission would have major drawbacks in the areas of safety, security, and nonproliferation. Nuclear fusion, however, is portrayed by its proponents as mitigating these drawbacks, and scientists continue to pursue fusion's promise with two large-scale projects: the International Thermonuclear Experimental Reactor (ITER), and the Laser Inertial Fusion Engine (LIFE) reactor. Although supporters often hail fusion as proliferation resistant, the technology could be used to create weapons-usable fissile material. This article explains how fissile material could be created in ITER or LIFE and analyzes other nonproliferation implications of fusion; the authors discuss the various challenges faced by ITER and LIFE.     

The Russian hybrid warfare strategy – neither Russian nor strategy

Following Russia’s annexation of Crimea and its initial actions in eastern Ukraine in 2014, the term hybrid warfare has received much public attention. Many have argued that the Russian actions we saw in Ukraine were part of a completely new strategy while others have suggested that there was nothing new in Russia’s actions. This article takes a critical look at these claims. Through the assessment of the history of the term hybrid warfare and a rigorous analysis of the so-called Gerasimov doctrine, this study finds that the Russian hybrid warfare strategy is rather a western myth than a formal comprehensive Russian strategic concept. Additionally, through the assessment of the Russian use of information operations and the way she has utilised the cyberspace in several recent conflicts, the study finds that against all claims Russia did not make these areas its main battlefield, but rather has been using them in support of its traditional concepts.