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Contribution to Book
Modeling of Supply Chain Risk Under Disruptions with Performance Measurement and Robustness Analysis
Managing Supply Chain Risk and Vulnerability: Tools and Methods for Supply Chain Decision Makers (2009)
  • Anna Nagurney, University of Massachusetts - Amherst
  • June Dong
  • Qiang Qiang
Abstract

In this paper, we develop a new supply chain network model with multiple decision-makers associated at different tiers and with multiple transportation modes for shipment of the good between tiers. The model formulation captures supply side risk as well as demand-side risk, along with uncertainty in transportation and other costs. The model also incorporates the individual attitudes towards disruption risks among the manufacturers and the retailers, with the demands for the product associated with the retailers being random. We present the behavior of the various decision-makers, derive the governing equilibrium conditions, and establish the finite dimensional variational inequality formulation. We also propose a weighted supply chain performance and robustness measure based on our recently derived network performance/efficiency measure and provide supply chain examples for which the equilibrium solutions are determined along with the robustness analyzes. This paper extends previous supply chain research by capturing supply-side disruption risks, transportation and other cost risks, and demand-side uncertainty within an integrated modeling and robustness analysis framework.

Publication Date
2009
Editor
T. Wu and J. Blackhurst
Publisher
Springer
Citation Information
Anna Nagurney, June Dong and Qiang Qiang. "Modeling of Supply Chain Risk Under Disruptions with Performance Measurement and Robustness Analysis" London, EnglandManaging Supply Chain Risk and Vulnerability: Tools and Methods for Supply Chain Decision Makers (2009)
Available at: http://works.bepress.com/anna_nagurney/40/