Supply Chain Risk Management in Chinese Chemical Industry based on Stochastic Chance-Constrained Programming Model

Authors

Liping Liu, Research Center of Virtual Business, Institute of Operations and Supply ChainManagement, School of Business, East China University of Science and Technology, 130 Meilong Road, Shanghai, 200237, P. R. China
Shuxia Li
Yifan Wu

Author Country (or Countries)

P. R. China

Abstract

It is necessary to research on how to manage risks in Chinese chemical industry supply chain effectively. After analyzing supply chain risks and mitigation strategies in Chinese chemical industry supply chain, firstly this paper defines the supply chain risk management problem in Chinese chemical industry. Then this paper develops a stochastic chance-constrained programming model to select optimal mitigation strategies effectively to achieve risk reduction goals without exceeding the expenses budget. Finally, this paper gives a numerical example and discusses how the change of model parameter affects the optimal solution.

Suggested Reviewers

N/A

Digital Object Identifier (DOI)

http://dx.doi.org/10.12785/amis/080333

Recommended Citation

Liu, Liping; Li, Shuxia; and Wu, Yifan (2014) "Supply Chain Risk Management in Chinese Chemical Industry based on Stochastic Chance-Constrained Programming Model," Applied Mathematics & Information Sciences: Vol. 08: Iss. 3, Article 33.
DOI: http://dx.doi.org/10.12785/amis/080333
Available at: https://digitalcommons.aaru.edu.jo/amis/vol08/iss3/33