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Managers at Lavalle, a transport company based in the south of France, introduced a new supply chain information system. They worked with a team of

Managers at Lavalle, a transport company based in the south of France, introduced a new supply chain information system. They worked with a team of consultants from the system supplier, who described the risks from the installation using a probability-impact matrix. This had five categories of likelihood, with guidelines for the corresponding probabilities - 'very unlikely meaning a probability of 0-10 per cent, unlikely' meaning 10-35 per cent, 'medium' meaning 35-65 per cent, 'likely' meaning 65-90 per cent and 'very likely meaning more than 90 per cent. They assigned values of 1 to 5 respectively to each category. Similarly, they assessed the impact of risks as very low, low, medium high and very high - so a delay of, say, 1 week in the project would have very low impact, a delay of 1 to 4 weeks would have low impact, a delay of 4 to 10 weeks would have medium impact, and so on. Then they assigned values of 1 to 5 respectively to these consequences.
a) Build the table matrix
b) Comment results

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