Title: Quantification of risk mitigation environment of supply chains using graph theory and matrix methods

Authors: Mohd Nishat Faisal, D.K. Banwet, Ravi Shankar

Addresses: Department of Management Studies, Indian Institute of Technology, Hauz Khas, New Delhi-110016, India. ' Department of Management Studies, Indian Institute of Technology, Hauz Khas, New Delhi-110016, India. ' Department of Management Studies, Indian Institute of Technology, Hauz Khas, New Delhi-110016, India

Abstract: Today supply chains leverage their partner|s competencies and in the process also inherit the risks associated with various links of a supply chain. Although it is impossible to completely eliminate various risks, an environment can be created which helps to effectively mitigate risk. The most difficult part of Supply Chain Risk Management (SCRM) is an understanding of the variables related to risk mitigation and their relative interdependencies. This paper presents a conceptual framework which models various variables associated with risk mitigation environment along with their interdependencies. Using graph theory and matrix methods, the Risk Mitigation Environment (RME) is quantified and presented in the form of a single numerical index. The proposed model is quite versatile from the point of view that it provides an opportunity to integrate new variables which could impact the overall supply chain risk mitigation environment along with the potential to benchmark supply chains on risk mitigation dimension.

Keywords: supply chain management; SCM; risk mitigation; graph theory; matrix methods; risk management; benchmarking; industrial engineering.

DOI: 10.1504/EJIE.2007.012652

European Journal of Industrial Engineering, 2007 Vol.1 No.1, pp.22 - 39

Published online: 05 Mar 2007 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article