Security of products and data in supply chains is an issue in industries such as agriculture, manufacturing, health and others.

Investment by individual supply chain members would help ensure security, although contribution to this public good is not always in their best interest. We investigate the security of a general supply chain and study the interactions of the members of the chain and how these interactions affect investment decisions in security. We design incentive mechanisms such as the sharing of destruction costs, price differentiation, and the allocation of public catastrophe costs to encourage supply chain members to invest in security. We also demonstrate that competition between suppliers can enhance public security, whereas competition between retailers can harm it.

Students and faculty are invited to remain after the seminar for a coffee and snacks reception sponsored by the The Logistics Institute.