Risk management plays a vital role in effectively operating supply chains in the presence of a variety of uncertainties. Over the years, many researchers have focused on supply chain risk management (SCRM) by contributing in the areas of defining, operationalising and mitigating risks. In this paper, we review and synthesise the extant literature in SCRM in the past decade in a comprehensive manner. The purpose of this paper is threefold. First, we present and categorise SCRM research appearing between 2003 and 2013. Second, we undertake a detailed review associated with research developments in supply chain risk definitions, risk types, risk factors and risk management/mitigation strategies. Third, we analyse the SCRM literature in exploring potential gaps.

https://minerva-access.unimelb.edu.au/bitstream/handle/11343/118650/8.pdf

Supply chain risk management: a literature review

This chapter is devoted to a more detailed examination of game theory. Game theory is an important tool for analyzing strategic behavior, is concerned with how individuals make decisions when they recognize that their actions affect, and are affected by, the actions of other individuals or groups. Strategic behavior recognizes that the decision-making process is frequently mutually interdependent. Game theory is the study of the strategic behavior involving the interaction of two or more individuals, teams, or firms, usually referred to as players. Two game theoretic scenarios were examined in this chapter: Simultaneous-move and multi-stage games. In simultaneous-move games the players effectively move at the same time. A normal-form game summarizes the players, possible strategies and payoffs from alternative strategies in a simultaneous-move game. Simultaneous-move games may be either noncooperative or cooperative. In contrast to noncooperative games, players of cooperative games engage in collusive behavior. A Nash equilibrium, which is a solution to a problem in game theory, occurs when the players’ payoffs cannot be improved by changing strategies. Simultaneous-move games may be either one-shot or repeated games. One-shot games are played only once. Repeated games are games that are played more than once. Infinitely-repeated games are played over and over again without end. Finitely-repeated games are played a limited number of times. Finitely-repeated games have certain or uncertain ends.

An Introduction to Game Theory

Supply chain resilience (SCR) manifests when the network is capable to withstand, adapt, and recover from disruptions to meet customer demand and ensure performance. This paper conceptualizes and comprehensively presents a systematic review of the recent literature on quantitative modeling the SCR while distinctively pertaining it to the original concept of resilience capacity. Decision-makers and researchers can benefit from our survey since it introduces a structured analysis and recommendations as to which quantitative methods can be used at different levels of capacity resilience. Finally, the gaps and limitations of existing SCR literature are identified and future research opportunities are suggested.

Review of quantitative methods for supply chain resilience analysis

Supply chain risk management (SCRM) is a nascent area emerging from a growing appreciation for supply chain risk by practitioners and by researchers. However, there is diverse perception of research in supply chain risk because these researchers have approached this area from different domains. This paper presents our study of this diversity from the perspectives of operations and supply chain management scholars: First, we reviewed the researchers’ output, i.e., the recent research literature. Next, we surveyed two focused groups (members of Supply Chain Thought Leaders and International Supply Chain Risk Management groups) with open-ended questions. Finally, we surveyed operations and supply chain management researchers during the 2009 INFORMS meeting in San Diego. Our findings characterize the diversity in terms of three “gaps”: a definition gap in how researchers define SCRM, a process gap in terms of inadequate coverage of response to risk incidents, and a methodology gap in terms of inadequate use of empirical methods. We also list ways to close these gaps as suggested by the researchers.

https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1742217_code642908.pdf?abstractid=1639435

Researchers’ Perspectives on Supply Chain Risk Management

A review of applications of Analytic Hierarchy Process in operations management

Purpose – The aim of the research is to provide a method to evaluate supply chain risks that stand in the way of the supply chain objectives.Design/methodology/approach – An analytical hierarchy process model is proposed to identify supply chain risk factors with a view to improving the objective of customer value. The two phases of the method are the prioritization of supply chain objectives; and the selection of risk indicators. A case study is also presented.Findings – The appreciation of the most critical supply chain risks comes from careful evaluations of the impacts and a consideration of the cause‐effect relationships. The involvement of key managers is essential. In the case study the two most divergent evaluations were from the logistics manager and the sales manager.Research limitations/implications – Further application in various companies and industry sectors would be helpful to compare different cases and findings.Practical implications – The model allows for flexibility in using (and the f...

Managing risks in the supply chain using the AHP method

Supply chain risk network management : a Bayesian belief network and expected utility based approach for managing supply chain risks

Exploiting knowledge across networks through reputation management

Preface.- Part I Reference Theories.- Chapter 1 From Social and Natural Science Comes a Historical Overview on the Concepts of Uncertainty and Risk.- Chapter 2 Governance and Risk Management.- Chapter 3 Risk Management Perspectives.- Part II Risk Assessment: Approaches, Techniques and Good Practices.- Chapter 4 The Need for an Enterprise-Wide Approach to Risk Management.- Chapter 5 Risk Identification.- Chapter 6 Risk Analysis.- Part III Risk Treatment: Approaches, Techniques and Good Practices.- Chapter 7 Risk Treatment.- Part IV Supply Chain Risk Management and Business Continuity.- Chapter 8 Operational Risk and Supply Chain Risk Management.

Risk Management: How to Assess, Transfer and Communicate Critical Risks

Many forces have combined to make today's supply chains more complex than ever before. These forces include the significant trend to out-sourcing; the growth of offshore manufacturing and procurement; the rising demand for customer-specific solutions and the globalisation of markets. The paper highlights the challenges that organisations must address in order to gain and retain competitiveness in today's markets – in particular, the need to achieve ever lower costs while simultaneously enhancing responsiveness. In other words, the need is to develop hybrid supply chains that are both ‘lean’ and ‘agile’. Using a single case study of a global telecommunications company as an example, the authors demonstrate how supply chain complexity can effectively be mastered by adopting a project management orientation and in the process enabling outcomes that are ‘leagile’, that is, both lean and agile.

Barbara Gaudenzi

Papers

Managing risks in the supply chain using the AHP method

Supply chain risk network management : a Bayesian belief network and expected utility based approach for managing supply chain risks

Exploiting knowledge across networks through reputation management

Risk Management: How to Assess, Transfer and Communicate Critical Risks

Achieving supply chain ‘Leagility’ through a project management orientation