Risk Exposure Index (REI)

Risk Exposure Index, developed by David Simchi-Levi, is a supplier segmentation method that enables business to focus mitigation efforts on the most important suppliers and risk areas rather than ignoring them or using an exhaustive approach. It assesses the cost of a potential major disruption based on the Time to Recovery (TTR) for each level or node in the supply chain, and the resulting Financial Impact (FI).

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