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Article
Measuring changes in international production from a disruption: Case study of the Japanese earthquake and tsunami
International Journal of Production Economics (2012)
  • Cameron A. MacKenzie, University of Oklahoma Norman Campus
  • Joost R. Santos, George Washington University
  • Kash Barker, University of Oklahoma Norman Campus
Abstract
The earthquake and tsunami that struck Japan on March 11, 2011 caused a tremendous loss of life and property. The disaster also disrupted global supply chains, which was blamed for anemic growth in the global economy. A multiregional input-output model can quantify the international impacts on production due to changes in demand from companies reducing their orders because of a disruption. Using the input-output model to conceptualize a supply chain, we present a unique method for calculating indirect production losses caused by disabled production facilities. Methods for calculating the possible transfer of demand to industries in other countries are also discussed. We apply the multiregional input-output model to the Japanese earthquake and tsunami. Comparing results generated by Japanese consumer sales with those generated by Japanese production data reveals that Japanese demand was satisfied by other countries and that inventory in the production pipeline likely allowed consumer sales to remain strong.
Keywords
  • disruption,
  • input-output,
  • inventory,
  • Japan earthquake
Publication Date
2012
Publisher Statement
NOTICE:This is the author's version of a work that was accepted for publication in International Journal of Production Economics. Changes resulting from the publishing process, such as peer review, editing,corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. A definitive version was subsequently published in International Journal of Production Economics,138 (2012):doi:10.1016/j.ijpe.2012.03.032.
Citation Information
Cameron A. MacKenzie, Joost R. Santos and Kash Barker. "Measuring changes in international production from a disruption: Case study of the Japanese earthquake and tsunami" International Journal of Production Economics Vol. 138 Iss. 2 (2012)
Available at: http://works.bepress.com/cameron_mackenzie/6/