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Quantitative Risk Assessment in Supply Chains: A Case Study Based on Engineering Risk Analysis Concepts

In: Planning Production and Inventories in the Extended Enterprise

Author

Listed:
  • Léa A. Deleris

    (IBM Research – Smarter Cities Technology Center)

  • Feryal Erhun

Abstract

In recent years, numerous events have shown the extent to which companies, and subsequently their supply chains, are vulnerable to uncertain events. We have witnessed many supply chain malfunctions (with substantial consequences) due to supply and demand disruptions: affected companies reported, on average, a 14% increase in inventories, an 11% increase in cost, and a 7% decrease in sales in the year following the disruption (Hendricks and Singhal 2005). Component shortages, labor strikes, natural and manmade disasters, human errors, changes in customer taste, technological failures, malicious activities, and financially distressed and, in extreme cases, bankrupt partners, among many others, can cause disruptions in supply chains:

Suggested Citation

  • Léa A. Deleris & Feryal Erhun, 2011. "Quantitative Risk Assessment in Supply Chains: A Case Study Based on Engineering Risk Analysis Concepts," International Series in Operations Research & Management Science, in: Karl G Kempf & Pınar Keskinocak & Reha Uzsoy (ed.), Planning Production and Inventories in the Extended Enterprise, chapter 0, pages 105-131, Springer.
    • Handle: RePEc:spr:isochp:978-1-4419-8191-2_5
    DOI: 10.1007/978-1-4419-8191-2_5
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    Cited by:

    1. Govindan, Kannan & Chaudhuri, Atanu, 2016. "Interrelationships of risks faced by third party logistics service providers: A DEMATEL based approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 177-195.
    2. Gordana Radivojević & Vladimir Gajović, 2014. "Supply chain risk modeling by AHP and Fuzzy AHP methods," Journal of Risk Research, Taylor & Francis Journals, vol. 17(3), pages 337-352, March.

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