Risk Mitigation to Increase Time to Survive

In our increasingly interconnected global economy, businesses confront heightened risks of supply chain disruptions. This capstone project, sponsored by Tempur Sealy International Inc., a leading manufacturer in the mattress industry, focuses on evaluating and enhancing supply chain resilience to mitigate these disruptions. The project introduces a unique methodology that combines Time to Survive (TTS) analysis and procurement optimization. This dual approach quantifies the cost of resilience measures, providing a tangible value to efforts often viewed as abstract or precautionary. In addition, this methodology supports key decision-making processes within the company, particularly in relation to storage capacity investments, inventory planning, and procurement strategy. By analyzing scenarios and potential disruptions, we offer valuable insights that not only highlight areas of potential risk but also suggest viable solutions for improvement. Our findings demonstrate that through the optimal allocation of resources and strategic procurement practices, Tempur Sealy can maintain its existing levels of supply chain resilience while also achieving cost savings. This balance is crucial in ensuring the company can effectively manage potential disruptions without compromising financial performance. Finally, we posit that the tools and methodology developed during this project have broader applications beyond the specific case presented. We believe these methods can be generalized and utilized by other companies across various industries. This approach enables businesses to justify investments into risk mitigation measures, providing a clear, quantifiable value to these often overlooked yet crucially important efforts. This study, therefore, contributes to the literature on supply chain management and resilience, offering practical tools and insights for businesses navigating the complexities of the global supply chain.