Patent ID: 8626558
Filing Date: 2014-01-07
Classification: G06Q

Abstract:
1. A method of managing supply chain risk, the method comprising determining with a computer a degree of supply chain risk to an enterprise as a function of an effect of a disruption of delivery of a production input to the enterprise on a financial performance metric of the enterprise, wherein the determining step comprises factoring an economic impact score (EI) with a supply risk score (SR) to give a supply chain risk score (SCR) that is reflective of the degree of supply chain risk; and wherein the production input is a material or component taken in or operated on by a manufacturing process performed by the enterprise, wherein each of EI and SR independently is normalized to a scale of from >0 to 10 and SCR=EI*SR/10, wherein EI comprises normalized annual gross margin in currency (GMc) of the product(s) produced by the enterprise using the production input, wherein the normalized GMc is expressed on a logarithmic scale (log 10 ) of from >0 to 10, wherein the economic impact score is >0 where the annual GMc of the enterprise related to the production input is >0% of total GMc of the enterprise and the economic impact score is 10 where the annual GMc of the enterprise related to the production input is 100% of total GMc of the enterprise; and wherein SR is at least one of an external market factor, internal market factor, supplier factor, or any combination of at least two thereof and SR is normalized to a relative scale of 1 to 10 with 1 being least likelihood of the disruption occurring and 10 being greatest likelihood of the disruption occurring; comparing, ranking, or comparing and ranking supply chain risks of at least two different production inputs; and taking an ameliorating action so as to reduce the degree of supply chain risk.