PROJECT REPORT

ON
RESEARCH METHODOLOGY

PGDM BATCH (2019-21)

SEC – (A)

Submitted To: Submitted By:

Prof. Priyank Sinha Amit Chambhare
Amit Rawani
Aslam Shaik
Ayush kumar
 Infrastructural Risk in Supply Chain Management
 Abstract:

Risk management plays a significant role in effectively operative offer chains within

the presence of a spread of uncertainties. Over the years, several researchers
have centered on offer chain risk management (SCRM) by tributary within the areas of process,
operationalizing and mitigating risks. During this paper, we have a tendencyto review
and compound the existent literature in SCRM within the past decade in a very comprehensive
manner. the aim of this paper is threefold. First, we have atendency
to gift and classes SCRM analysis showing between 2003 and 2013. Second, we have a tendency
to undertake an in depth review related to analysis developments in offer chain risk definitions,
risk types, risk factors and risk management/mitigation methods. Third, we have a tendency
to analyse the SCRM literature in exploring potential gaps.

 Introduction:
First, every of those review articles focuses on a specific topic of SCRM as summarized
in like risk classification (Tang and monocot genus 2011), risk correlational analysis (Rao
andGoldsby 2009), risk management strategies (Tang 2006a) or analysis gap identification
(Colicchia and Strozzi 2012).Rao and Goldsby (2009) reviewed fifty five journal
articles printed between 1998 and 2008, and synthesised the various literature into
a compartmentalization of risk factors, as well as environmental, industrial, organisational,
problem-specific and decision-maker connected factors. Tang and monocot genus (2011)
adopted the literature citation analysis on 138 journal articles printed between 1995 and half of
2008, and known and classified potential risks related to material flow, money flow and
knowledge flow.Sodhi, Son, and Tang (2012) reviewed thirty one journal
articles printed between 1998 and 2010 to formulate their own perception of diversity in
SCRM.Colicchia and Strozzi (2012) additionally applied the citation network analysis on fifty
five journal articles printed between 1994 and 2010, and known the biological process patterns
and rising trends in SCRM. the articles printed between 2003 and 2013 applying qualitative risk
management strategies were ne'er reviewed.In order to fill these gaps, this paper presents a
comprehensive review of all relevant journal articles within the space of
SCRM showing between 2003 and 2013, and undertakes an efficient classification theme. Our
work additionally proposes a brand new definition for SCRM by classifying offer chain
risk varieties, risk factors and risk management strategies. In order to manage and mitigate the
negative effects caused by such risks, a big quantity of labor within the space of offer chain risk
management (SCRM) is undertaken in each domain and professional person circles.
They additionally conducted openended surveys with 2 focus teams of offer chain researchers,
and later on a close-ended survey with over two hundred offer chain researchers to gift 3 gaps
in SCRM: definition gap (lack of clear agreement on the definition of SCRM), method gap
(inadequate coverage of responses to risk incidents) and methodology gap (insufficient use of
empirical methods)More specifically, a hundred and seventy out of 224 journal articles
reviewed during this paper weren't studied in existent review articles, as well as ninety
three journal articles printed once 2010 and seventy seven journal articles printed between
2003 and 2010.

 Research Motivation
Infrastructural risk is major risk in supply chain, infrastructure breakdown can cause huge losses
for company and may result in turmoil of company. The case of Ericsson is well known in this
domain. Due to a fire at a Phillips semiconductor plant in 2000, the production was disrupted,
which eventually led to Ericsson’s $400 million loss (Chopra and Sodhi 2004). The earthquake,
tsunami and the subsequent nuclear crisis that occurred in Japan in 2011 caused Toyota’s
production to drop by 40,000 vehicles, costing $72 million in profits per day (Pettit, Croxton,
and Fiksel 2013). The catastrophic Thailand flooding of October 2011 affected the supply chains
of computer manufacturers dependent on hard discs, and also disrupted the supply chains of
Japanese automotive companies with plants in Thailand (Chopra and Sodhi 2014). In order to
control and mitigate the negative effects caused by such risks, a significant amount of work in
the area of Infrastructural risk in supply chain management is undertaken.

 Literature review
In recent years, supply chain disruptions have impacted the performance of companies. In this
research we have examined International Journal of Production Research, 2015, Supply chain
risk management by William Hoa , Tian Zhengb , HakanYildizc and Srinivas Talluric,
(Department of Management and Marketing, The University of Melbourne, Carlton,
Australia; b Solution Department, China Merchants Loscam (Shenzhen) Investment Holding
Co., Ltd, Shenzhen, China; c Department of Supply Chain Management, Eli Broad Graduate
School of Management, Michigan State University, East Lansing, MI, USA)
In their paper, they review and synthesise the extant literature in SCRM in the past decade in a
comprehensive manner. The purpose of their paper is threefold. First, they present and
categorise SCRM research appearing between 2003 and 2013. Second, they undertake a
detailed review associated with research developments in supply chain risk definitions, risk
types, risk factors and risk management strategies. Third, they analyse the SCRM literature in
exploring potential gaps. From their review we found a research gap on infrastructural risk in
supply chain management. Since infrastructure plays a critical role in managing supply chain
effectively, so preventing performance of the company from infrastructural disruption is very
important.
Some of them provided useful insights on safety stock reduction. Ballou and Burnetas (2003)
compared a traditional inventory planning approach with one that is based on filling customer
demand from any one of several stocking locations, referred to as cross filling, while
considering the dispersion of demand among stocking locations. It was revealed that cross
filling can help reducing safety stocks. Talluri, Cetin, and Gardner (2004) developed a safety
stock model and benchmarked it with existing models for managing make-to-stock inventories
under demand and supply variations. Based on a case study at an over-the-counter
pharmaceutical company, the proposed safety stock model performed well in terms of cost
savings. Betts and Johnston (2005) presented the multi-item constrained inventory model to
compare just-in-time (JIT) replenishment with component substitution under stochastic
demand. The analysis showed that JIT replenishment is more effective than component
substitution because of less investment in safety stock.

 RESEARCH METHODOLOGY
Companies sometimes make the mistake of scattering responsibility for the various assets that make up
their supply chain infrastructure across multiple departments and divisions. They do not have a single,
coherent vision of their entire supply chain, and as a result, they fail to recognize when something is
missing from their supply chain infrastructure. The most frequently encountered "missing link" results
from not viewing information technology as a vital part of that infrastructure, as the following example
illustrates.

A 3PL handled the distribution of consumer electronics to retail outlets for several
manufacturers. This required highly accurate asset-tracking capabilities, so the 3PL installed a
WMS in two distribution centers to manage the receiving, device configuration, and shipment
to retail locations. It also managed reverse logistics, in which devices were returned from the
stores for repair, reconfiguration, or disposal.

Despite the WMS installation, inventory accuracy was still well below the customers'
expectations. To find out what was wrong, the 3PL launched a complete audit of the consumer
electronics operations.

It turned out that the problem was not the WMS. It was the warehouse layout and
corresponding storage locations. There were too few locations to meet the customers'
inventory requirements, and these locations were too large. As a result, when the warehouse
crew put inventory away, they were commingling different types of items in individual
locations. Then, when order pickers pulled inventory from those locations, they were making
errors because they had to sort through different items to get the product they were directed
to pick. An inappropriate racking system design made the WMS less effective than it should
have been. The solution to the inventory-accuracy issue was re-profiling the racking to ensure
that the DCs always have the right-sized inventory locations for the individual inventory
instances, and then letting the WMS do its work.

 CONCLUSION
Supply chain infrastructure should be developed over time in accordance with a company's
vision of its entire supply chain, rather than through reactions to individual events or situations.
The first step in long-term planning is to create a baseline inventory, using the following
process:

A. Construct an inventory of infrastructure assets

 Compile information about all facilities, equipment, and IT applications within the supply
chain.
 Characterize each asset in terms of its economic life, as well as the location and function of
each within the supply chain.

B. Profile the flow of goods and human resources through the supply chain

 Characterize the physical assets in terms of capacity utilization.

 Evaluate labor productivity, service levels, and inventory accuracy.
 Perform an activity-based costing exercise to understand the operating expenses
associated with flowing volumes through these assets. Activity-based costing is the
exercise of assigning operating expenses to specific activities, such as picking orders or
manufacturing finished goods