Managing Operational Risk in Supply Chain

Origins of supply chain risk are accidental and complicated. Therefore managing risk has become a critical component of supply chain management. Though different types of framework for supply chain risk management process and methodologies for risk analysis have been proposed, most put focuses on risk's identification and classification without considering the diversity of supply chain, or on risk evaluation without including expert knowledge for history data is not adapt to risk's contingency. This research aims to reinforce operational supply chain risk management by proposing an integrated process model combining. The contributions of this paper are two aspects: (1) discussing a method to analyzing risk by decomposing it; (2) playing an important role in the process mode, Bayesian statistics is applied in uncertainty evaluation.