Benchmarking supply chains on risk dimensions Online publication date: Fri, 27-Mar-2009
by Mohd Nishat Faisal
International Journal of Services and Operations Management (IJSOM), Vol. 5, No. 3, 2009
Abstract: The purpose of this paper is to investigate risk in the context of supply chains and benchmark supply chains on risk dimensions. The graph-theoretic approach is applied to model the dimensions of risk susceptibility and risk mitigation in a supply chain. The variables that are related to risk susceptibility and risk mitigation were identified through an extensive literature review. Considering the individual impacts and interdependencies among these variables, risk susceptibility and risk mitigation indices were proposed. Finally, the case supply chains were benchmarked on the basis of the two indices and a risk matrix is developed. The two indices that are proposed in the research can be used by supply chain managers to get fair ideas about the potential risks that could impact their supply chain and, simultaneously, the preparedness of the supply chain to counter the risks. The novelty of the approach lies in transforming the qualitative dimensions of risk into quantitative terms.
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