New Risk Analysis Method to Evaluate BCP of Supply Chain Dependent Enterprise

Abstract eng:
Business continuity is now being regarded as an important factor in management of enterprises. Most of the enterprises are not stand-alone; they depend on Supply Chain (SC), for their operations. In order to draw BCP (Business Continuity Plan) for supply chain dependent enterprise, there is a need for a quantitative risk analysis method to evaluate such manufacturing system. The business interruption time is a crucial factor in terms of economic loss. A model enterprise with several factories connected through supply chain was applied in analyzing the risk. Several location types are considered. The supply chain connection, parallel, series and mixed are considered. The damage probability of factories and their business interruption time are calculated based on the seismic risk of different locations in Japan. The annual exceedance probability of business interruption time of these location and supply chain types are calculated and compared. Through combining these factors a realistic risk analysis method for evaluating business interruption is proposed and is proven to be functional. This method may be applied for strategic location planning of supply dependent enterprises who wish to minimize their risk.

• Export as: BibTeX | MARC | MARCXML | DC | EndNote | NLM | RefWorks
• Add to your basket