A stochastic model for risk management in global supply chain networks. (English) Zbl 1127.90038
Summary: With the increasing emphasis on supply chain vulnerabilities, effective mathematical tools for analyzing and understanding appropriate supply chain risk management are now attracting much attention. This paper presents a stochastic model of the multi-stage global supply chain network problem, incorporating a set of related risks, namely, supply, demand, exchange, and disruption. We provide a new solution methodology using the Moreau - Yosida regularization, and design an algorithm for treating the multi-stage global supply chain network problem with profit maximization and risk minimization objectives.
MSC:
| 90B50 | Management decision making, including multiple objectives |
| 90C15 | Stochastic programming |
| 91B30 | Risk theory, insurance (MSC2010) |
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