Risk Management of Supply and Cash Flows in Supply Chains

verfasst von: Jian Li, Jia Chen, Shouyang Wang

Verlag: Springer New York

Buchreihe : International Series in Operations Research & Management Science

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

Risk management has become an essential issue in supply chain management, from the modeling of the decision maker's risk preference, and the studies on uncertain elements such as demand, supply, price, lead time, etc., to the consideration of more practical background including cash flow constraints, inventory financing and delayed cash payment. In this new volume, the authors provide a framework to study the interaction of various factors related to risk and their influence on supply chain management.

The scope of areas covered includes operations management, decision analysis, and business administration. This book focuses on several key issues of risk management in supply chains. Specifically, an analysis framework is presented for studying the supplier selection problem and identifying the optimal sourcing strategy in a one-retailer two-suppliers supply chain with random yields. The optimal sourcing strategy of a retailer and the pricing strategies of two suppliers under an environment of supply disruption are investigated. Besides, the authors study the dynamic inventory control problems with cash flow constraints, financing decisions as well as delayed cash payment. In addition, originating from the annual international iron ore price negotiation, the authors model the bargaining process to deal with the risk of wholesale price in the game analysis context.

Within the three perspectives of risk management in supply chains, the modeling of decision maker's risk preference has been extensively studied and many results have been obtained to guide the practice. However, the analysis on the other two kinds of topics is still in its infancy, and needs more efforts from academia. It is thus the ambition and innovation for this book to contribute on risk management in supply chains in the following ways:

(1) characterizing the explicit sourcing strategy (i.e., single sourcing or dual sourcing) to deal with supply disruption risk;

(2) introducing the concepts of financial risk measurement by incorporating cash flow constraints, inventory financing and delayed cash payment into inventory management models; and

(3) providing insights for the iron ore price negotiation to help steel manufacturers handle the risk of price increase.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

In recent years, the adopting of some supply chain practice such as outsourcing and lean production helps in smoothing the operations, but it also results in little buffer inventory in a supply chain which may lead to increased vulnerability of the chains.1 At the same time, the business environment has evolved to be an increasingly complex scenario characterized by high uncertainty and rapid and frequent changes. For example, supply chains are subject to many potential external sources of disruption, e.g., natural disasters, terrorist attacks, and industrial actions, etc. The disruption in one firm can rapidly result in a significant adversary impact on the entire chain. Due to such changes, firm managers not only concern profit maximization but also pay much attention to risk containment or loss minimization for their firms. Motivated by the requirements of real world practice, supply chain risk management attracts more and more attention from academia (Chen et al. 2007; Shi 2004; Tang 2006a;Wu and Wang 2004a,b;Wu et al. 2006a; Zhou et al. 2006).