A software application for rapid risk assessment in integrated supply chains

Supply chain risk management (SCRM) has become a critical component of supply chain management with the movement to global supply chains and the increasing occurrence of internal and external risk events. Effective management of supply chain risks requires a comprehensive yet rapid assessment of all the risk factors in the supply chain and their potential impacts. This paper presents a software application framework for rapid risk assessment (RRA) in integrated supply chains. The proposed framework combines qualitative and quantitative methods to assess and prioritize the risks. Qualitative methods are based on surveys used to collect the risk probability and impact data for the main agents in the supply chain (i.e., supplier, customer, manufacturer, etc.). Quantitative methods are based on probability theory and fuzzy logic. Risks are calculated for each agent in the supply chain and are then aggregated per product type. The proposed RRA tool was tested in a manufacturing environment to assess the validity of the proposed framework. Results from the case study showed that the assessment obtained by the proposed framework agrees with what the risk management experts think about the risk levels and priorities in the company. (C) 2015 Elsevier Ltd. All rights reserved.