Impact assessment of country risk on logistics performance using a Bayesian Belief Network model

PurposeThis paper aims to assess the impact of different drivers of country risk, including business environment, corruption, economic, environmental, financial, health and safety and political risks, on the country-level logistics performance.Design/methodology/approachThis study utilizes three datasets published by reputed international organizations, including the World Bank Group, AM Best and Global Risk Profile, to explore interactions among country risk drivers and the Logistics Performance Index (LPI) in a network setting. The LPI, published by the World Bank Group, is a composite measure of the country-level logistics performance. Using the three datasets, a Bayesian Belief Network (BBN) model is developed to investigate the relative importance of country risk drivers that influence logistics performance.FindingsThe results indicate a moderate to a strong correlation among individual risks and between individual risks and the LPI score. The financial risk significantly varies relative to the extreme states of the LPI score, whereas corruption risk and political risk are the most critical factors influencing the LPI score relative to their resilience and vulnerability potential, respectively.Originality/valueThis study has made two unique contributions to the literature on logistics performance assessment. First, to the best of the authors’ knowledge, this is the first study to establish associations between country risk drivers and country-level logistics performance in a probabilistic network setting. Second, a new BBN-based process has been proposed for logistics performance assessment and operationalized to help researchers and practitioners establish the relative importance of risk drivers influencing logistics performance. The key feature of the proposed process is adapting the BBN methodology to logistics performance assessment through the lens of risk analysis.

Bayesian Belief Network Approach for Supply Risk Modelling

Today’s global and complex world increased the vulnerability to risks exponentially and organizations are compelled to develop effective risk management strategies for its mitigation. The prime focus of research is to design a supply risk model using Bayesian Belief Network bear in mind the tie-in of risk factors (i.e. objective and subjective) those are critical to a supply chain network. The proposed model can be re-engineered as per new information available at disclosure, so risk analysis will be current and relevant along the timeline as so situation is strained. The top three factors which influenced profitability were transportation risk and price risks. Netica is the platform used for designing and running simultaneous simulations on the Bayesian Network. The proposed methodology is demonstrated through a case study conducted in an Indian manufacturing supply chain taking inputs from supply chain/risk management experts. .

Reducing the Complexity of Casual Representation in Bayesian Belief Network

Background: Bayesian Belief Network (BBN) is a well-established causal framework that is widely adopted in various domains and has a proven track record of success in research and application areas. However, BBN has weaknesses in causal knowledge elicitation and representation. The representation of the joint probability distribution in the Conditional Probability Table (CPT) has increased the complexity and difficulty for the user either in comprehending the causal knowledge or using it as a front-end modelling tool. Methods: This study aims to propose a simplified version of the BBN ─ Bayesian causal model, which can represent the BBN intuitively and proposes an inference method based on the simplified version of BBN. The CPT in the BBN is replaced with the causal weight in the range of[-1,+1] to indicate the causal influence between the nodes. In addition, an inferential algorithm is proposed to compute and propagate the influence in the causal model. Results: A case study is used to validate the proposed inferential algorithm. The results show that a Bayesian causal model is able to predict and diagnose the increment and decrement as in BBN. Conclusions: The Bayesian causal model that serves as a simplified version of BBN has shown its advantages in modelling and representation, especially from the knowledge engineering perspective.

Risk assessment of collisions of an autonomous passenger ferry

Autonomous transportation is an increasingly popular concept and is gradually becoming a reality. This transformation also changes the way people travel. For example, the autonomous ferry is an emerging alternative for residents living in coastal areas. To evaluate the safety of an autonomous ferry, a thorough safety review is necessary. This paper makes an initial attempt by developing a model for performing a risk assessment of collisions between an autonomous ship with manned vessels and applying this to a specific ferry operating in a canal. The safety barriers to prevent a collision are identified, as well as the respective failure modes. A Bayesian belief network is employed to model the collision and to quantitively assess the collision risk of the autonomous ferry. Relevant data are collected to perform a quantitative risk analysis. By running the model, the likelihood of a collision is calculated. A sensitivity analysis is also performed to identify the most contributing causes.

The Application of Simple Additive Bayesian Allocation Network Process in System Obsolescence

In designing a system, multi-dimensional obsolescence design criteria such as Scheduling; Reliability, Availability, Maintainability; Performance and Functionality; and Costs affect its overall lifespan. This work examines the impacts of these factors on systems during the design phase using a new application called the Simple Additive Bayesian Allocation Network Process (SABANP). The application uses a combination of Multi-Criteria Decision Making (MCDM) methodology and a Bayesian Belief Network to address the impact of obsolescence on a system. Unlike the requirement of weights that are prevalent in the analysis of MCDM, this application does not require weights. Moreover, this application accounts for functional dependencies of criteria, which is not possible with the MCDM methodologies. A case study was conducted using military and civilian experts. Data were collected on systems’ obsolescence criteria and analyzed using the application to make trade-off decisions. The results show that the application can address complex obsolescence decisions that are both quantitative and qualitative. Expert validation showed that SABANP successfully identified the best system for mitigating obsolescence.

A Risk-Based Approach to Mine-Site Rehabilitation: Use of Bayesian Belief Network Modelling to Manage Dispersive Soil and Spoil

Dispersive spoil/soil management is a major environmental and economic challenge for active coal mines as well as sustainable mine closure across the globe. To explore and design a framework for managing dispersive spoil, considering the complexities as well as data availability, this paper has developed a Bayesian Belief Network (BBN)-a probabilistic predictive framework to support practical and cost-effective decisions for the management of dispersive spoil. This approach enabled incorporation of expert knowledge where data were insufficient for modelling purposes. The performance of the model was validated using field data from actively managed mine sites and found to be consistent in the prediction of soil erosion and ground cover. Agreement between predicted soil erosion probability and field observations was greater than 74%, and greater than 70% for ground cover protection. The model performance was further noticeably improved by calibration of Conditional Probability Tables (CPTs). This demonstrates the value of the BBN modelling approach, whereby the use of currently best-available data can provide a practical result, with the capacity for significant model improvement over time as more (targeted) data come to hand.