Title: Establishing a decision-making model of global supply chain risk management from the perspective of risk and vulnerability

Authors: Cheng-Wen Lee

Addresses: Faculty of International Business, Chung Yuan Christian University, 200, Chung Pei Rd., Chung Li, Taiwan

Abstract: This research attempts to analyse the reasons behind supply disruptions of Taiwan's firms and tries to find measures to mitigate them. First, we propose a decision-making model of 'the hierarchical structure of global supply chain risk management (GRM)', which takes into account two main criteria, supply chain risk (SCR) and supply chain vulnerability (SCV). In turn, we explore the inter-relationship among accessing risk sources and weakening driving factors, as well as the risk managerial elements in SCR and SCV. Then, we build this dynamic relation into SCR managerial logic and design a corresponding decision-making path. Based on the analytic network process, a methodology is designed for the optimal selection of risk management methods and tools. The result findings indicate elements of loss, threats to customer life and safety, catastrophic risk, and supplier concentration are the most influential causes in SCV. On the other hand, supply modularisation is the best solution. This research provides significant insight on GRM, which not only has a strategic but also operational perspective and help to tackle the fundamental and crucial relationship in dynamic risk system.

Keywords: supply chain risk management; supply chain management; SCM; supply chain vulnerability; modularisation; vertical integration; supply chain disruptions; Taiwan; decision making; analytical network process; ANP; modular supply chains.

DOI: 10.1504/IJSCOR.2014.065454

International Journal of Supply Chain and Operations Resilience, 2014 Vol.1 No.1, pp.28 - 53

Received: 03 Oct 2013
Accepted: 27 Jan 2014
Published online: 31 Oct 2014 *

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