Introducing Risk Considerations into the Supply Chain Network Design

Abstract

Supply chains (SC) aim to provide products to the final customer at a certain service level. However, unforeseen events occur that impede supply chain objectives. SC Risk has been studied in the literature, providing frameworks and methodologies to manage SC failures. Nevertheless, more efforts are needed to prevent hazardous and disruptive risks and their consequences. These risks must be considered during the process of designing a supply chain. Some methodological contributions concerning risk in the supply chain network design (SCND) are conceptual frameworks for mitigating SC disruptions, which suggest strategies and measures for designing robust and resilient SCs. Although such contributions are valuable, they do not indicate how to cope with risk when designing a SC. The main objective of this research is to describe a methodology aimed at including risk considerations into the SCND. Our proposal aims to be, on the one hand, a comprehensive approach that includes a risk identification and assessment procedure in each of the stages of the SCND process and, on the other hand, a tool for decision-making in SC design or redesign processes when SC risks need to be considered. The methodology proposed is an extension of a SCND methodology including risk considerations in order to improve the performance of the supply chains. A case study illustrates how the proposed methodological works, achieving the identification of SC risks already observed in previous works.