Title: Development of a prescription framework for supply chain risk management: cases of Asian MNCs

Authors: Jae-Yong Yang; Geun-Wan Park; Kwangtae Park; Rajesh Piplani

Addresses: School of Interdisciplinary Industrial Studies, Hanyang University, 222, Wangsimni-ro, Seongdong-gu, Seoul, 04763, South Korea ' Institute of Knowledge Service, Hanyang University ERICA, Hanyangdaehak-ro, Sangnok-gu, Ansan, Gyeonggi-do, 15588, South Korea ' Korea University Business School, Anam-ro 145, Seongbuk-gu, Seoul, 02841, South Korea ' Nanyang Technological University, 50 Nanyang Avenue, Singapore

Abstract: We use the level of impact and duration of risk to classify types of supply chain risks and their effective prescriptions using case studies of multi-national companies. The classification of supply chain risks and countermeasures for each risk type are presented as a risk diagnosis and prescription matrix. The companies adopt a risk acceptance strategy when the impact is low and the duration short. When impact is high and the duration short, substitute raw materials (or production sites) are considered under risk avoidance strategy. New suppliers and technologies are developed for complete replacement for risk mitigation when the duration of risk is long but the impact low. For risk-sharing, new demand sources are developed, and diversification of suppliers and production sites pursued when the risk duration is long and the impact high. Novelty of our study is in considering risk duration as an additional variable in risk management strategy.

Keywords: supply chain risk; prescription matrix; Asian MNC.

DOI: 10.1504/IJISE.2024.138164

International Journal of Industrial and Systems Engineering, 2024 Vol.47 No.1, pp.98 - 124

Received: 30 Jun 2022
Accepted: 01 Jul 2022
Published online: 30 Apr 2024 *

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