Managing Uncertainty Essay

776 Words Apr 12th, 2014 4 Pages
BAD 64041
Eric Krizay
Thun, Druke, Hoenig (2011). Managing uncertainty, an empirical analysis of supply chain risk management in small and medium sized enterprises. International Journal of Production Research, Vol. 49, No. 18, 15 September 2011, 5511 – 5525.
Research Classification
In the past years, a fairly new research area has emerged on the supply chain management scene and has gained considerable attention from both academics and practitioners: Supply chain risk management. Thun, Druke, and Hoenig set out to empirically investigate, supply chain risk management in small to medium sized companies. By analyzing data from 67 various German automotive manufacturing plants, the authors seek to identify the key drivers of
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In order to distinguish between companies with a high degree of supply chain risk management and those with no or only limited implementation, the plants are grouped by means of a cluster analysis based on factors reflecting the instruments of supply chain risk management. Groups are then created representing two different approaches to deal with supply chain risks, i.e. reactive and preventive supply chain risk management. The clusters are investigated concerning differences in terms of performance criteria. For hypotheses 3a and 3b, the researchers used a two factor analysis to create one value that can be used to measure the preventative instruments and another value that can be used to measure the reactive instruments.
Evaluation of the Usefulness of the Above Operations Management/Decision Science Techniques
For the first hypothesis, the analysis showed that it must be rejected. While some small to medium sized enterprises do regard their supply chain as more vulnerable (Possibly due to a higher dependence on large OEM’s and weaker cash flows), the larger company’s do not regard their supply chain as any less vulnerable.
The second hypothesis also had to be rejected due to the analysis showing that there was no real significance between small the medium sized enterprises and large

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