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Modeling of Supply Chain Risk Under Disruptions with Performance Measurement and Robustness Analysis

  • Chapter
Managing Supply Chain Risk and Vulnerability

Abstract

In this chapter, 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 analyses. This chapter extends previous supply chain research by capturing supplyside disruption risks, transportation and other cost risks, and demand-side uncertainty within an integrated modeling and robustness analysis framework.

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Author information

Authors and Affiliations

  1. Department of Finance and Operations Management, Isenberg School of Management, University of Massachusetts, 01003, Amherst, MA, USA

    Qiang Qiang & Anna Nagurney

  2. Department of Marketing and Management, School of Business, State University of New York at Oswego, 13126, Oswego, NY, USA

    June Dong

Authors
  1. Qiang Qiang
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  2. Anna Nagurney
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  3. June Dong
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Editor information

Editors and Affiliations

  1. Department of Industrial Engineering, Ira A. Fulton School of Engineering, Arizona State University, 875906, 85287-5906, Tempe, AZ, USA

    Teresa Wu

  2. Department of Logistics, Operations and Management Information Studies, College of Business, Iowa State University, 50011, Ames, IA, USA

    Jennifer Blackhurst

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© 2009 Springer-Verlag London Limited

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Qiang, Q., Nagurney, A., Dong, J. (2009). Modeling of Supply Chain Risk Under Disruptions with Performance Measurement and Robustness Analysis. In: Wu, T., Blackhurst, J. (eds) Managing Supply Chain Risk and Vulnerability. Springer, London. https://doi.org/10.1007/978-1-84882-634-2_6

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  • DOI: https://doi.org/10.1007/978-1-84882-634-2_6

  • Publisher Name: Springer, London

  • Print ISBN: 978-1-84882-633-5

  • Online ISBN: 978-1-84882-634-2

  • eBook Packages: EngineeringEngineering (R0)

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