The Human Factor in Supply Chain Risk Management

Abstract

In a three paper essay series we address the human impact in SCRM from the microeconomic and macroeconomic perspectives. First, using a positivist theory building approach, we synthesize behavioral risk management and supply chain risk management theory to propose behavioral supply chain risk management as a new topic area. This paper is microeconomic in nature and focuses mostly on individuals as the unit of analysis in a SCRM context. Second, we introduce cross-impact analysis as a scenariobased supplier selection methodology. We demonstrate how cross-impact analysis can be used to provide supply chain decision-makers with probability estimates of the future viability of the members of a given set of possible suppliers in a backdrop of macroeconomic risk. The third and final paper in the series incorporates the probability estimates resulting from a cross-impact analysis exercise into a hybrid stochastic mixed-integer programming (SMIP) technique CIA-SMIP. We demonstrate how the CIA-SMIP approach can be utilized as a single-source supplier selection model. In its totality, this dissertation represents a step towards the theoretical framing of the human impact on SCRM into two main distinguishable areas: microeconomic and macroeconomic.