Strategies to Address Risks of Platinum Scarcity for Supply Chain Downstream Firms

Abstract

Increased recycling, product redesign and substitution can improve firm resilience in the face of uncertainties in materials availability. The delays involved in implementing these strategies may result in unprepared firms losing market share to competitors who are better prepared to address these challenges. This paper will expand from previous work in this area by examining the statistical significance of the effect of recycling in the face of limited supply. It has been shown that the timing and magnitude of a supply shutdown can influence the magnitude of price response. On average, increased recycling is a means for stabilizing price effects owing to its faster response times.