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An analytical framework for supply network risk propagation: A Bayesian network approach

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  • Garvey, Myles D.
  • Carnovale, Steven
  • Yeniyurt, Sengun

Abstract

There are numerous examples of supply chain disruptions that have occurred which have had devastating impacts not only on a single firm but also on various other firms in the supply network. We utilize a Bayesian Network (BN) approach and develop a model of risk propagation in a supply network. The model takes into account the inter-dependencies among different risks, as well as the idiosyncrasies of a supply chain network structure. Specific risk measures are derived from this model and a simulation study is utilized to illustrate how these measures can be used in a supply chain setting.

Suggested Citation

  • Garvey, Myles D. & Carnovale, Steven & Yeniyurt, Sengun, 2015. "An analytical framework for supply network risk propagation: A Bayesian network approach," European Journal of Operational Research, Elsevier, vol. 243(2), pages 618-627.
    • Handle: RePEc:eee:ejores:v:243:y:2015:i:2:p:618-627
    DOI: 10.1016/j.ejor.2014.10.034
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