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A framework of the risk assessment for the supply chain of hazardous materials

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  • Victor M. Rayas

    (Tecnologico de Monterrey)

  • Marco A. Serrato

    (Tecnologico de Monterrey, Vicerrectoria de Educacion Continua)

Abstract

This paper shows a framework of risk assessment models and analyzes the Mexican context of the supply chain for hazardous materials. A new set of risk assessment models is developed for each main activity of the closed-loop supply chain for hazardous materials. This model can be used to evaluate suppliers, transportation routes, outsourcing options and the material itself. A proportional risk-assessment technique is used to define risk cost calculation for the hazardous materials management using the National Fire Protection Agency classification. Hazardous materials represent a logistics challenge because of the risk involved at their handling. From 2006 to 2009 a total of 1,200 accidents were reported at different points of the supply chain. The investigated models require a previous analysis of the activities in order to calculate factors, such as the accident rate and possible affected population, among others; that could affect the cost in case of an accident. Analyzing the risk, cost values can be used by decision makers to determine which activities should be outsourced in order to avoid the risk itself or to fulfill laws and regulations.

Suggested Citation

  • Victor M. Rayas & Marco A. Serrato, 2017. "A framework of the risk assessment for the supply chain of hazardous materials," Netnomics, Springer, vol. 18(2), pages 215-226, December.
    • Handle: RePEc:kap:netnom:v:18:y:2017:i:2:d:10.1007_s11066-017-9117-7
    DOI: 10.1007/s11066-017-9117-7
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    References listed on IDEAS

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    Cited by:

    1. Nishat Alam Choudhary & Shalabh Singh & Tobias Schoenherr & M. Ramkumar, 2023. "Risk assessment in supply chains: a state-of-the-art review of methodologies and their applications," Annals of Operations Research, Springer, vol. 322(2), pages 565-607, March.

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