Risks in Supply Chain

Guill6n G., Mele F., Bagajewicz M., Espuna A. and Puigjaner L. 2003b. Management of financial and consumer satisfaction risks in supply chain design. Proceedings of ESCAPE 13. Lappeenranta, Finland, 1-4 June 2003. 

Tang, Christopher S. Brian Tomlin. 2008. How much flexibility does it take to mitigate supply chain risks. In Supply Chain Risk — A Handbook of Assessment, Management and Performance, eds. G. A. Zsidisin and Bob Ritchie Springer. 

Yang, T. 2006. Multi objective optimization models for managing supply risks in supply chains. PhD dissertation. Department of Industrial Engineering, The Pennsylvania State University, University Park, PA. 

As shown in Table 7.2, risks in supply chain to firms are not only from their business partners, but also from customers, internal operations, new technologies, political issues, natural disasters, etc. Some risks can be reduced or even eliminated, but the others are hard to control. How to successfully manage the risks in supply chain becomes more and more critical to firms. Although many companies have realized their importance, few are well prepared because of the complexity of the risk issues in supply chain and the lack of good risk... 

Risk map. (From Elkins, D. et al.. Identifying and assessing supply chain risk, in Supply Chain Risk Management, Handfield, R.B. and McCormack, K.B., eds., Auerback Publishers, Boca Raton, FL, 2008a, Chapter 3.)... 

There are several ways to include detectability of disruption risks in supply chain risk models. One way is to directly use the values in the MFPT matrix, the ntij values, and create an objective function to minimize the number of transitions between suppliers and the buyer. Otherwise, the MFPT values may not be suitable to use directly in risk quantification since values in the MFPT matrix are in transitions and need to be transformed to actual time units (e.g., hours, days, or weeks) for proper use in disruption quantification. This transformation to time units is supply chain specific, since the speed with which the information spreads through the nodes depends on the information technology systems implemented at each node and the availability and strength of connection among the nodes. For instance, if a buyer has implemented an ERP system that allows communication with all tiers of his supply chain, he would have much better connectivity to any supplier and the transition times would be much shorter than buyers that do not have a similar visibility. We call the time it takes any disruption news to reach from node i to j as the disruption delay between nodes i and j and denote it as Aij. 

---