Supply chain risk management via correlated scenario analysis
by Erhan Deniz, James T. Luxhoj
International Journal of Integrated Supply Management (IJISM), Vol. 4, No. 3/4, 2008

Abstract: In this paper, we study a comprehensive Supply Chain (SC) optimisation model that incorporates the uncertainty associated with demand, market price, supply and procurement costs. A number of correlated scenarios are built each of which represents a set of possible realisations of those random factors. Taking a stochastic programming approach, the variables and parameters are transformed into a Mixed Integer Programming (MIP) model, where the objective is to maximise the net present value of the cash flow for the whole SC over a finite planning horizon. The proposed model provides a useful tool for both strategic (e.g. locations and capacities of facilities) and operational (e.g. material flow) SC decision making.

Online publication date: Tue, 14-Oct-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Integrated Supply Management (IJISM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com