KwangSup Shin, YongWoo Shin, Ji‐Hye Kwon and Suk‐Ho Kang
The purpose of this paper is to propose a novel risk assessment approach that considers the inter‐relationship between supply chain risks and the structure of network at the same…
Abstract
Purpose
The purpose of this paper is to propose a novel risk assessment approach that considers the inter‐relationship between supply chain risks and the structure of network at the same time. To reduce the impact of the supply chain risk and enhance the flexibility of transportation route finding during the product delivery, the authors propose a way to model the risk propagation and how to integrate it with the supply chain network using Bayesian Belief Network (BBN). The key risk indicators (KRI) of each vertex and edge of the supply chain network which are measured or computed by the proposed approach can be utilized to develop the optimal transportation route in the execution phase.
Design/methodology/approach
BBN is utilized to illustrate the relations among supply chain risks which may take place in a certain vertex. To apply the BBN to the supply chain network, the authors develop the framework to integrate BBN and the supply chain network by using the general functions that describe the characteristics of the risk factors and inter‐relationships between vertices.
Findings
By using the proposed risk assessment and dynamic route‐finding approach, it is possible to reduce the unexpected cost from the supply chain risk and overcome the limitations of previous risk management strategies which focus on developing counter plans and assume the independency of supply chain risks.
Practical implications
The proposed approach describes how to develop KRI‐BBN to model the risk propagation and to integrate the KRI‐BBN and supply chain network. The KRIs directly measured or computed by KRI‐BBN in real time can be utilized to alternate supply chain execution plans such as inventory management, demand management and product flow management. Transportation problem considering risk is developed to show how to apply the proposed approach and numerical experiments are conducted to prove the cost effectiveness.
Originality/value
The contribution of this paper lies in the way of developing KRI‐BBN to assess the supply chain risk and modelling of the risk propagation by integrating KRI‐BBN with supply chain network. With the proposed risk assessment approach, it is able to alternate the transportation route to minimize the unexpected cost and transportation cost simultaneously.
Details
Keywords
Despite the rapid growth in online sales of apparel, some consumers are still reluctant to purchase clothing on the Internet. This may be due to perceptions of risk associated…
Abstract
Despite the rapid growth in online sales of apparel, some consumers are still reluctant to purchase clothing on the Internet. This may be due to perceptions of risk associated with the type and quantity of information on which to make their purchase decision. The purpose of this study was to explore the availability of product and customer service information and to examine Web site quality of leading US Internet apparel retailers. A content analysis of their Web sites shows that online apparel merchants are providing a large amount of basic product information traditionally provided on labels, but are not providing sensory or experiential product information useful in making purchase decisions for fashion‐oriented garments. Online merchants are providing extensive customer service information. Basic Web site quality components are evident on most apparel Web sites, but entertaining and aesthetic features that can differentiate a merchant from competitors are being used sparsely.