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Over the years, supply chain reconfiguration decisions have been solely based on operational risk. Simplification strategies, such as horizontal mergers, and networking strategies, such as risk pooling, are conflicting paradigms that have been shown to improve financial performance of supply partners. The implication of this to disruption risk is not fully known, especially as it concerns information security breach (ISB). Analysts have rated ISB as a huge disruption risk, costing businesses millions of dollars. Using a credible and well-established agent-based simulation approach and statistical analysis, we examine the impact of ISB on the simplification and risk pooling strategies respectively under three different order replenishment systems. The effect of reconfiguring the supply chain is first examined in a non-security breach scenario and then in a breached scenario. We find that reconfiguration has no benefit to a supply chain using a parameter based replenishment policy (option I), in both breach and non-breach situations, but leads to significant advantage when batch ordering model (option II) or a combined batch-and-parameter based ordering policy (option III) is used. We also established that batch ordering system favours the risk pooling strategy whereas a combined batch-and-parameter ordering system favours the simplification counterpart especially when the simplification is at the wholesaler tier. This study has significant implications for supply chain design as well as information security priorities. This is one of the first papers to look at how ISB impacts supply chain configuration and the role of ordering decision context.

In recent years, customized bus (CB) is becoming an innovative model of the public transport system (PTS) in China. This service provides an advanced, timely, personalized, and flexible responses to the demand of the PTS, especially of commuters. Obviously, it could have an impact on public transport (PT) service. For instance, CB services influence the customers' variety-seeking behavior, which results in changes of customer options in different periods. Therefore, customers could be divided into different groups of preference. In this paper, we construct a two-period Hotelling game model by variety-seeking behavior and service level. The results show that, in the first stage, the departure frequency of CB and PT is influenced by variety-seeking behavior and service level. In the second stage, departure frequency is influenced by service level only. Next, although the departure frequency of bus impacts the changes of passenger ratios in different stages, service level appreciably impacts passenger number. From customer surplus and social welfare, we find that adjustment of service level can increase social welfare, which means that CB and PT will reach an optimum effect. The present work can provide a valuable reference to policymakers, practitioners, and others., Highlights • Passengers' changes in different stages were investigated. • The departure frequency, passenger number, and social effects were analyzed. • Operational strategies were proposed. • Interaction between variety-seeking and service investment were studied.