Several questions I receive concern the very basic elements of supply chain risk management. Since reading “Categorization of Supply Chain Risk and Risk Management” by Norrman and Lindroth (2004) I often referred to it, to describe the different aspects.
Framework
Norrman and Lindroth suggest a three dimensional framework to analyze different supply chain risk management issues (figure 1). The dimensions are:
In retrospect forecasts of the future often seem dull or at least miss important aspects of the actual realization. In 2000 the Ritchie and Brindley analyzed effects of the uprising Internet on supply chain management and especially newly emerging risks associated with them for small and medium sized enterprises. I wrote this review from the view of 2000 as well so you can decide yourself to what degree you see their hypothesis already fulfilled.
Submitted by Daniel Dumke on Fri, 2011-05-06 14:25
This was week 18 in 2011. I hope you had a great week and enjoyed reading the blog. I have read several great stories this week, that I’ll present here.
Risk in supply chains can be included in several different ways into the decision making process.
No Risk
A statement in many supply chain models is that some/most/all parameters of the model are fixed (e.g. fixed demand, zero probability of a hurricane).
The result is, if the real value of this parameter diverges from the assumptions, the results of the model will be flawed to a certain degree (up to completely unusable).
