BUS606: Operations and Supply Chain Management

Risk Breakdown Structure (RBS) is a hierarchical structure of project risks and is used for structuring and risk management. Due to the high number and variety of risks that affect supply chain risk management practice effectively, without identification and preparation of the risk of failure is not possible. In other words, without a systematic process for identifying and managing them correctly, any attempt to understand and deal with the risks is difficult. RBS technique can help to bring this matter as an effective tool to identify targeted and provides risk classification. Several studies on the identification and classification of risk factors in the supply chain are done. These include the following items to be mentioned:

Risks are categorized in nine parts including failures, delays, systems, forecasting, intellectual assets, providing, receiving, inventory and capacity or in the 6 categories of supply, production, demand, logistics, risk to non-natural causes Social risk control, and non-control. Some researchers categorized risks in the five including supply, demand, process and controls, and environmental. In research, risks are categorized in four parts including risk, supply, demand, operational and safety or supply, demand, failures, and natural disasters. Also Some others researchers risks in three categories, deviations, failures and incidents or supply, demand, and catastrophic risk or the supply, demand, and other risks which increase the cost. Or in 2 sets of supply and demand have presented. Other studies can also be noted that some of the projects have other risk factors. In sum total, this research mainly in the form of case studies conducted as part of a comprehensive structure not present risk of failure.