Supply chains have become complex because of
the globalization and outsourcing, and the lack of visibility
across the entire network makes it difficult to manage the
risks. The concept of ‘System survival signature’ has recently
been developed for capturing the network configuration of a
system comprising different types of components. Its utilization
in the evaluation of system reliability is unique in terms of its
capability of segregating the network signature from the
probability distribution of failure time of components. We
introduce this concept in the realm of supply chain risk
management. This novel application can be helpful in evaluating
supply network reliability through gauging two distinct features of
network configuration and risk profiles of the suppliers. The
application is illustrated with the help of two simple examples.
The technique can be of significant value to the supply chain
managers in taking strategic decisions concerning suppliers
and network configuration. We have also adapted the existing
risk importance measures in the field of reliability engineering
for their application in the domain of supply network
reliability.