35 An Enhanced Dichotomy Approach According to Tang2006 there are two sources

35 an enhanced dichotomy approach according to

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3.5 An Enhanced Dichotomy Approach According to Tang(2006), there are two sources of risks in a supply chain, namely 1.Operation risks. 2. Disruption risks. This suggestion broadly typologies risks in two categories. The former is re-
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A Comprehensive Study on Research Approaches to Supply Chain Risk Identification 55 『商学集志』第 82 巻第1号(’12 . 8) lated to daily operation which is internal factor while the latter is non-operational ex- ternal factor. To push this dichotomy further, Stone- braker et al.(2009)defined that the risk that make supply chain fragile has two main di- mensions .i.e. internal factors and external, with a footnote on random events. As for the internal source he classifies risk sources as 1.Physical logistics: Mechanical breakdowns; damage en route, shipping mishaps, accidents. 2.Behavior of suppliers 3.Behavior of customers 4.Information, communication, and con- trol system 5.People As for the Externalities, he points out 4 dimensions to identify supply chain risks 1.Legal, political and acts of government 2.Behavior of competitors 3.Financial, accounting, and economics 4.Environmental impact and unanticipated / random events 1.Acts of nature(weather) 2.Other external factor 3.Other factors 3.6 A Social System Approach Wagner and Bode(2006)call a nega- tive deviation from the expected value of a performance measure(resulting in negative consequences for the focal firm)a “supply chain risk” when this deviation is the result of a supply chain disruption. Accordingly they divide supply chain risk sources for identification into five distinct classes: 1.Demand side Result from disruptions emerging from downstream supply chain operations (Juttner 2005). It includes disruptions in the physical distribution of products to the end-customer and the distribu- tion network, as well as the uncertainty caused by customers’ unforeseeable demands. The so-called “bullwhip ef- fect” emanating volatility of inventories along the chain is its classic case. 2.Supply side Reside in purchasing, suppliers, sup- plier relationships, and supply net- works. Supply business risks relate to events that affect the continuity of the supplier and result in the interruption and termination of the byer-supplier relationship, including financial instabil- ity of suppliers, capacity constraints or shortages. Suppliers’ inability of adap- tion to changes suppliers. 3.Regulatory, Legal and Bureaucratic Risk Refer to the legal enforceability and ex- ecution of supply chain –relevant laws and policies as well as the degree and frequency of changes in these laws and policies. The higher the regulatory, le- gal and bureaucratic risk, the lower the supply chain performance.
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