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Title: A k-means clustering for supply chain risk management with embedded network connectivity

Authors: Xiao Feng Yin; Xiuju Fu; Loganathan Ponnambalam; Rick Siow Mong Goh

Addresses: Computing Science Department, Institute of High Performance Computing, 1 Fusionopolis Way, #16-16 Connexis, 138632, Singapore ' Computing Science Department, Institute of High Performance Computing, 1 Fusionopolis Way, #16-16 Connexis, 138632, Singapore ' Computing Science Department, Institute of High Performance Computing, 1 Fusionopolis Way, #16-16 Connexis, 138632, Singapore ' Computing Science Department, Institute of High Performance Computing, 1 Fusionopolis Way, #16-16 Connexis, 138632, Singapore

Abstract: In recent years, increased attention has been shown to the supply chain risk management due to the occurrences of several high profile disruptions which resulted in significant social, economic and political impact globally. However, there are not direct and easy ways of understanding the risk of an entire supply chain. In this paper, a network connectivity embedded k-means clustering approach has been proposed to determine at-risk clusters of nodes that share similar risk profiles and linkages with the focal company. It uses a multiple dimensional feature vector to represent the risks that nodes are facing, their geographical locations, supply chain attributes and network connectivity attributes. The clustering approach is able to reduce the complexity of a large supply chain network to facilitate in-depth targeted analysis and simulations. The effectiveness of the proposed approach has been illustrated by experiments that successfully identify the risk clusters and critical risk zones.

Keywords: supply chain risks; risk management; risk clusters; k-means clustering; supply chain management; SCM; embedded network connectivity; critical risk zones.

DOI: 10.1504/IJAL.2016.074916

International Journal of Automation and Logistics, 2016 Vol.2 No.1/2, pp.108 - 121

Received: 31 Jan 2015
Accepted: 22 Jul 2015

Published online: 24 Feb 2016 *

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