TITLE:
WCVaR-Based Risk Coordination Model for Multi-Product Supply
AUTHORS:
Min Jiang, Rui Shen, Zhiqing Meng
KEYWORDS:
WCVaR Model, Supply Chain, Supply-Production-Sale Integration, Multi Product
JOURNAL NAME:
Open Journal of Business and Management,
Vol.5 No.4,
September
18,
2017
ABSTRACT: The paper develops a multi-product supply chain model where supplyproduction-
sale integration is considered and the worst-case conditional value
at risk (WCVaR) model is applied as the risk measure, and also provides a
coordination strategy to minimize the supply chain risk. First, by analyzing
the source demand of market in the supply chain, three WCVaR models consisting
of three tiers—the supplier, the manufacturer and the retailer in the
supply chain are proposed to measure the market risk. Then, a risk coordination
model is proposed to cover the whole supply chain including producing,
order, inventory and sales. Finally, the numerical results show the efficiency of
the model in mitigating risks. And we make a summary of supply chain risk
management strategies.