Abstract
Supply chain management (SCM) improves efficiency of supply chains (SC) in terms of reduction of inventory and lead time. To the contrary, however, the pursuit of efficiency results in the vulnerability of SC and accelerates propagation of damage of risk incidents such as earthquake and factory fire. Therefore, supply chain risk management has become an important topic in SCM. In this paper, we propose a modeling method to represent a propagation of effects of risk incidents. In the proposed model, the SC is represented in terms of processes and resources used in the processes. The propagation of effects of risk incidents can be represented in such a way that risk incidents induce malfunction of resources, which then leads to malfunction of processes. An example of a model, which represents effects of earthquake to a manufacturing process, is described.
