A combined approach for supply chain risk management: description and application to a real hospital pharmaceutical case study

Managing risks in supply chains has emerged as an important issue in supply chain management. This research area has become familiar as supply chain risk management (SCRM). There are numerous approaches and techniques that are proposed in SCRM literature, but little in concrete and systematic approach for SCRM. In this paper, a SCRM framework comprising of different techniques and specialized procedures is proposed that can assist supply chain decision makers to risk identification, assessment and management. The combined approach consists of including the following. (1) Failure mode, effects, and criticality analysis to identify risk. (2) design of experiment to design risks mitigation and action scenarios. (3) Discrete event simulation to assess risks mitigation action scenario. (4) analytic hierarchy process to evaluate risk management scenarios. (5) desirability function approach to minimize the risk. The proposed approach is illustrated through a real hospital pharmaceutical supply chain case study.