## Identifying and Assessing the Risks in the Supply Chain

Read this article. Based on the authors' research, risks related to procurement and suppliers are identified. Focus on Table 1, the hierarchical structure of supply chain risks in 3 levels, and Table 2, risk evaluation criteria.

### 3. The Method of Entropy Shannon

In some Multiple Attribute Decision Making methods such as linear assignment method to determine the relative importance of the factors is an effective step in the process of problem solving. Such as coefficients of the variables can be extracted, using the Shannon Entropy experts and so on. Using stages Shannon Entropy method is as follows: After formation of the matrix, making amount of entry $r_{i j}$ (Decision matrix elements) can be $p_{i j}$ Converted (connection 4): $p_{i j}=\frac{r_{i j}}{\sum\limits_{i=1}^{m} r_{i j}} \forall i, j$ (4) The amount of characteristic $\mathrm{j}$ Entropy in connection (5) is calculated: $E_{j}=-k \sum\limits_{i=1}^{m} p_{i j} \ln p_{i j} \quad, k=\frac{1}{\ln m}$ (5) Using $E_{j}$ amount $d_{j}$ is calculated for each characteristic: $d_{j}=1-E_{j} \quad ; \forall j$ (6) Weight of $w_{j}^{\prime}$ ofcharacteristic $\mathrm{j}$ is obtained as follows: $w_{j}^{\prime}=\frac{d_{j}}{\sum\limits_{i=1}^{m} d_{j}}$ (7) If decision maker in his mind for the index as a factor the importance $\lambda_{j}$, the Weight can be calculated using connection (8): $w_{j}=\frac{\lambda_{j} w_{j}^{\prime}}{\sum\limits_{j=1}^{m} \lambda_{j} w_{j}^{\prime}}$ (8)