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Cost-Effectiveness and Manageability Based Prioritisation of Supply Chain Risk Mitigation Strategies

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Supply Chain Risk Management

Abstract

Risk treatment is an important stage of the risk management process involving selection of appropriate strategies for mitigating critical risks. Limited studies have considered evaluating such strategies within a setting of interdependent supply chain risks and risk mitigation strategies. However, the selection of strategies has not been explored from the perspective of manageability-the ease of implementing and managing a strategy. We introduce a new method of prioritising strategies on the basis of associated cost, effectiveness and manageability within a theoretically grounded framework of Bayesian Belief Networks and demonstrate its application through a simulation study. The proposed approach can help managers select an optimal combination of strategies taking into account the effort involved in implementing and managing such strategies. The results clearly reveal the importance of considering manageability in addition to cost-effectiveness within a decision problem of ranking supply chain risk mitigation strategies.

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Authors and Affiliations

  1. Department of Management Science, University of Strathclyde Business School, Glasgow, UK

    Abroon Qazi & John Quigley

  2. Department of Economics, University of Strathclyde Business School, Glasgow, UK

    Alex Dickson

Authors
  1. Abroon Qazi
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  2. John Quigley
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  3. Alex Dickson
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Corresponding author

Correspondence to Abroon Qazi .

Editor information

Editors and Affiliations

  1. Graduate Program in Business and Development Studies, Sophia University, Tokyo, Japan

    Yacob Khojasteh

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Qazi, A., Quigley, J., Dickson, A. (2018). Cost-Effectiveness and Manageability Based Prioritisation of Supply Chain Risk Mitigation Strategies. In: Khojasteh, Y. (eds) Supply Chain Risk Management. Springer, Singapore. https://doi.org/10.1007/978-981-10-4106-8_2

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