Abstract
In this paper, we consider the problem of finding a supply chain configuration with minimum risk and investment for risk mitigations. We have developed a simulation model considering disruption. We use this simulation model to evaluate supply chain risk. We propose three risk mitigation strategies: duplication, stabilization, and absorption. We used simulated annealing to find the optimal combinations of these mitigation plans. In a case study, we applied our model to a digital camera supply chain, and show how our model can be applied to obtain a proper supply chain configuration.
| Original language | English |
|---|---|
| Pages (from-to) | 12-22 |
| Number of pages | 11 |
| Journal | Journal of Japan Industrial Management Association |
| Volume | 66 |
| Issue number | 1 |
| Publication status | Published - 2015 |
Keywords
- Meta-Heuristics
- Risk Management
- Simulation
- Supply Chain Management
ASJC Scopus subject areas
- Industrial and Manufacturing Engineering
- Applied Mathematics
- Management Science and Operations Research
- Strategy and Management