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An Enterprise Risk Management Model for Supply Chains

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Optimization and Logistics Challenges in the Enterprise

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 30))

Summary

The design of an optimal supply chain rarely considers uncertainty within the modeling framework. This omission is due to several factors, including tradition, model size, and the difficulty in measuring the stochastic parameters. We show that a stochastic program provides an ideal framework for optimizing a large supply chain in the face of an uncertain future. The goal is to reduce disruptions and to minimize expected costs under a set of plausible scenarios. We illustrate the methodology with a global production problem possessing currency movements.

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Correspondence to John M. Mulvey .

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© 2009 Springer-Verlag US

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Mulvey, J.M., Erkan, H.G. (2009). An Enterprise Risk Management Model for Supply Chains. In: Chaovalitwongse, W., Furman, K., Pardalos, P. (eds) Optimization and Logistics Challenges in the Enterprise. Springer Optimization and Its Applications, vol 30. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-88617-6_5

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