Soalan

A191 SQQM5013 RISK ANALYSIS
MID SEMESTER TEST (30 MARKS)
18th October 2019 (Friday)
3 – 5 PM, LAB 4 SQS
Refer to the journal entitled: “Risk analysis in green supply chain using fuzzy AHP approach: A
case study” by Mangla et al. (2015) and answer the following questions:
i. Describe the type of risks, along with examples in this research article.
Economic risk. In economic applications, a distinction has traditionally been made between
certainty, risk and uncertainty, based on the availability of information. Certainty exists if the
outcome of a performance measure is known in advance. In this article, the priorities for each
specific risks were derived by using the fuzzy AHP method. It is to analyze the risks that
contribute the most in the supply chain.
Accident risk. The first task is to identify the overall system performance measures. The
objective is to avoid the risks happen in the green supply chain. The objective is focus on the
possible occurrence of the risks. Then, a deterministic model of the system is developed. In this
article, the risks are analyzed in fuzzy AHP method. It analyzes and highlights the risks that
should be focused on according to the preference weights and shows its importance according to
its ranking.
(4 marks)
ii. Determine the concept and perspective of risk used, and give TWO (2) reasons.
The concept and perspective of risk used is social science perspective. It refers to the full range
of beliefs and feelings that people have about the nature of hazardous events, their qualitative
characteristics and benefits, and most crucially their acceptability. In this article, the model used
to conduct the analysis is fuzzy AHP method. It is a method that gathers the qualitative
characteristics of the risks, and the preference weights are based on the acceptability of the
researchers.
(6 marks)
iii. What is the category and type of analysis for the risk analysis conducted in the article?
Justify.
The category is standard risk analysis and type of analysis is qualitative or quantitative. Standard
risk analysis is a more formalized procedure in which recognized risk analysis methods are used.
Risk matrices are often used to present the results. In this articles, the risk matrices are presented
in matrices.
(5 marks)
iv. Explain THREE (3) key elements for unifying approach used in the article.
Three key elements for unifying approach used in this article are background information,
models and simplification in probability consideration and observable quantities.
In this article, for the background information, the probabilities (preference weights) are
conditioned on the background information. The knowledge, characteristics and model about the
green supply chain management and companies were explained.
Moreover, the models and simplification in probability consideration is also used in this article.
The preference weights were listed for each risk category and specific risks, and the model used
is fuzzy AHP approach.
As for the observable quantities, they were described in the article as well. They were the
procedures exist expressing how to measure it. There are operational risks, supply risks, product
recovery risks, financial risks, demand risks and governmental and organizational related risks.
(6 marks)
v. State the criteria used for evaluating probability in the article. Give your reasons.
The criteria used for evaluating probability in the article is based on operational risk category (O)
with preference weights of 0.2507, financial risks (F) with preference weights 0.2236, supply
risks (S) with preference weights of 0.1863, product recovery risks with preference weights of
(PR) 0.1449, governmental and organizational related risk (GO) with preference weights of
0.1338, and demand risks (D) with preference weights of 0.0607. The higher the preference
weights of the risk category, the more important it contributes to the outcome, which is the
importance of the risk to the green supply chain management. It is capable enough to influence
the other categories of risk. Based on the sensitivity analysis, the priority (rank) of the specific
risks varies with respect to the change in operational category risk. Thus, it can be concluded that
operational category risk is very important needs to be focus on.
(4 marks)
vi. Suppose that you would like to adapt the same kind of risk analysis technique for green
supply chain in Malaysia. Select ONE (1) field or company which you think is most
suitable, and the reason why you choose it. Then, write TWO (2) other potential risks
that might be involved in your choice.
If I would like to adapt the same kind of risk analysis technique for green supply chain in
Malaysia, I think Company 1 is most suitable. The reason I think it is suitable because it has the
highest annual turnover than the other companies which means it has better financial situation.
Besides, the company is having over 1900 skilled and unskilled employees, giving commitment
in improving the environmental or green performance with the ISO-14001 environmental
management certification in business. It is also manufacturing top quality plastic molded
components in various sectors like engineering, automotive and consumer durable sector.
However, the other potential risks that might be involved in this choice is supply risks. The
company might facing issues related to disruptions in supply of green or eco-friendly raw
materials. Moreover, this choice is also facing governmental and organizational related risks.
There might be failed or poor governmental policies and directions in terms of governmental
environmental support. This will certainly influence the adoption of efficient green supply chain
practices.
(5 marks)
END OF QUESTIONS

Soalan

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Soalan

Uploaded by

Copyright:

Available Formats

A191 SQQM5013 RISK ANALYSIS

MID SEMESTER TEST (30 MARKS)

18th October 2019 (Friday)

3 – 5 PM, LAB 4 SQS

You might also like