Setting up a supply chain of transformers to transmit power during a grid failure

An article in the New York Times (November 16,2012) describes a recently unclassified National Academy report describing the vulnerability of the US power grid. Solutions described include custom step up and step down generators to maintain transmission across the grid that can be deployed during an emergency, battery backup for traffic lights and natural gas powered backup pumps in for gas supply. But how should the supply chain for such backup transformers be designed ? How should the costs to maintain this backup be allocated ? Should the cost of these alternatives be financed by a premium charged, similar to an insurance ?

Advertisements

About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s