Research

year 2009 
author Kanghyun Kim 
Keyword Supply Chain Risk, Supply Chain Risk Management, Supply Chain Performance Measure, Integrated Risk Management, Performance Measure based Supply Chain Risk Management 
Abstract Today, many corporations are performing various strategies to increase benefits with respect to cost and market share; outsourcing, product diversification and etc. But instead, these strategies make the supply chain vulnerable and decrease it´s efficiency due to uncertainties and unstable factors of various form. Therefore a lot of attention is being paid to the importance of Supply Chain Risk Management (SCRM) that establishes a mitigation plan by monitoring the supply chain and assessing the vulnerability in advance, preparing for serious damages from many potential supply chain risks and the risk itself.

It is very important that Supply Chain Risk Management (SCRM) should be able to reflect the characteristics of supply chain thoroughly. Especially, the study for risk management methodology that agrees with the goal of supply chain and can improve a performance of supply chain in the step of risk management and control is necessary.

In this paper, we define the types of Supply Chain Risk (SCR) and classify the risk sources according to the decision-making level of supply chain; strategic level, tactical level and operational level. We derive the core supply chain risk sources and performance measures, perform an importance assessment of them focusing on high-tech electronic industry using the AHP method and examine their correlation for quantitative and effective decision-making. Based on correlation of risk and performance measures in the supply chain, we propose the Performance Measure based Supply Chain Risk Management (PM-SCRM) process and a mathematical model according to the optimal control level. And we propose a system framework for the integrated risk management in supply chain. Finally, we verify the PM-SCRM method and analyze it´s effect through simulation based on a risk occurred scenario in the supply chain.

We expect that the result of this paper could offer a guideline for performing a good decision-making and deciding a rather rapid and quantitative risk control method and level when corporations select a risk management strategy and perform it substantially in the supply chain´s operational level. 
c MS