LISS 2012 pp 35-41 | Cite as

Supply Chain Disruption Assessment Based on the Perspective of Trade-off in Newsvendor Model

Conference paper


This paper centers on supply chain assessment, following the cost-income principle and taking the cost trade-off into account. The analysis tool is newsvendor model and its perspective—finding the critical point, which in tradition model stands for the demarcation point of profit but in this paper the is the least costs considering disruption costs and expected revenues. In this way, this paper tries to find out the optimum method to assess supply chain risks.


Supply chain disruption Risk assessment Newsvendor model 


  1. 1.
    Wakolbinger T, Cruz JM (2011) Supply chain disruption risk management through strategic information acquisition and sharing and risk-sharing contracts. Int J Prod Res 49(13):4063–4084CrossRefGoogle Scholar
  2. 2.
    Zhang Song (2011) Fortification models hedging disruption risks based on arborescent supply chain. Oper Res Manag Sci 20(1):186–191Google Scholar
  3. 3.
    Tang CS (2006) Perspective in supply chain risk management. Int J Prod Econ 103:451–488CrossRefGoogle Scholar
  4. 4.
    Neiger D, Rotaru K, Churilov L (2009) Supply chain risk identification with value-focused process engineering. J Oper Manag 27:154–168CrossRefGoogle Scholar
  5. 5.
    Vilko JPP, Hallikas JM (2011) Risk assessment in multimodal supply chains. Int J Prod Econ. doi: 10.1016/j.ijpe.2011.09.010
  6. 6.
    Mitchell VW (1995) Organizational risk perception and reduction: a literature review. Br J Manag 6(2):115–133CrossRefGoogle Scholar
  7. 7.
    Ding Weidong, Liu Kai, He Guoxian (2003) Study on risk of supply chain. China Saf Sci J 13(4):64–66Google Scholar
  8. 8.
    Xu Juan, Liu Zhixue (2006) Ericsson positive supply chain risk management. China Logist Purch 23:72–73Google Scholar
  9. 9.
    Meng Kedeng (2009) Research on supply chain risk with comprehensive grey fuzzy evaluation. Decis Info 58(10):178–179Google Scholar
  10. 10.
    Minghui Xu, Jianbin Li (2010) Optimal decision when balancing expected profit and conditional value-at-risk in newsvendor models. J Syst Sci Complex 23:1054–1070CrossRefGoogle Scholar
  11. 11.
    Jammernegg W, Kischka P (2007) Risk-averse and risk-taking newsvendors: a conditional expected value approach. Rev Manag Sci 1(1):93–110CrossRefGoogle Scholar
  12. 12.
    Jammernegg W, Kischka P (2008) A newsvendor model with service and loss constraints. Jena Research Papers in Business and Economics, JenaGoogle Scholar
  13. 13.
    Jammernegg W, Kischka P (2011) Risk preferences of a news vendor with service and loss constraints. Int J Prod Econ. doi: 10.1016/j.ijipe.2011.10.017
  14. 14.
    Yan Qin, Ruoxuan Wang, Vakharia AJ et al (2011) The newsvendor problem: review and directions for future research. Eur J Oper Res 213:361–374CrossRefGoogle Scholar
  15. 15.
    Xanthopoulos A, Vlachos D, Iakovou E (2012) Optimal newsvendor policies for dual-souring supply chains: a disruption risk management framework. Comput Oper Res 39:350–357CrossRefGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.School of Economics and ManagementBeijing Jiaotong UniversityBeijingPeople’s Republic of China
  2. 2.Industrial EngineeringUniversity of TorontoTorontoCanada

Personalised recommendations