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A Model for Supply Chain Risk Analysis and Management

Treur, C.W.C. (2008) A Model for Supply Chain Risk Analysis and Management. Master's Thesis / Essay, Industrial Engineering and Management.

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Abstract

Organisations have devoted a great deal of energy to improving supply chain performance by reducing costs and eliminating inefficiencies. While these pressures to reduce costs have led to ‘lean’ supply chains, they also have reduced the margin for error if a disruption takes place. Unanticipated events that disrupt the flow of goods can negatively affect operational performance and have devastating consequences for an organisation’s financial health. With the assistance of the Dutch practice of the service line Supply Chain Strategy of Deloitte Consulting, some issues in the field of supply chain risk management have been explored. The present research is based on the premise, derived from theory and confirmed by consultants, that it is particularly interesting to know where the major elements of risk reside in the supply chain. In order to enable the consultant to proactively identify and manage the major elements of supply chain risk, we have developed and built the Supply Chain Risk Analysis and Management (SCRAM) model. It consists of a risk analysis model and a risk management model. The risk analysis model uses nine Bayesian networks to structure 69 risk factors. These risk factors have been identified by a review of project documents, interviews and questionnaires. The risk management model consists of a set of predefined general risk mitigation strategies and a decision methodology. The decision methodology is developed to prioritise these strategies on the basis of cost-effectiveness and to evaluate their fit with the circumstances of the company. Finally, two industry applications demonstrated that the SCRAM-model can be used by consultants to (1) inform the client about the range of supply chain risks elements, (2) obtain a first indication whether the company is exposed to each of these risk elements and (3) encourage the generation of feasible risk mitigation strategies.

Item Type: Thesis (Master's Thesis / Essay)
Degree programme: Industrial Engineering and Management
Thesis type: Master's Thesis / Essay
Language: English
Date Deposited: 15 Feb 2018 07:28
Last Modified: 15 Feb 2018 07:28
URI: http://fse.studenttheses.ub.rug.nl/id/eprint/8424

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