Resource sharing as supply chain disruption risk management measure

This research aims to highlight the benefits of sharing financial resources in supply chain networks. By modifying a resource sharing scheme that is used successfully by Eastern African Masaai tribes to support other herders in case of an unexpected loss of cattle to a resource sharing system for supply chains as described by Hao et al (2015). The so-called Osotua-based resource sharing model has proven to increase the overall cattle herd size and that is therefore favorable to support other and even rival herders in critical situations. We implement the Osotua-based resource sharing model into a bankruptcy propagation model based on Battiston et al. (2007). We can show that there is a substantial increase of the network's overall health when using the Osotua-based supply chain resource sharing. Additionally, we explore the effects of the number of partners in a network willing to share resources as well as the effects of increasing network complexity.