Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty
Automation, Control and Intelligent Systems
Volume 3, Issue 6, December 2015, Pages: 112-117
Received: Dec. 20, 2015; Published: Dec. 21, 2015
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Authors
De Gu, Key Laboratory of Advanced Process Control for Light Industry (Ministry of Education), Institute of Automation, Jiangnan University, Wuxi, China
Jishuai Wang, Suzhou Institute of Biomedical Engineering and Technology, Chinese Academy of Sciences, Suzhou, China
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Abstract
This paper presents a methodology to include financial risk management for the design of multiproduct, multi-echelon supply chain networks under uncertainty. The method is in the framework of two-stage stochastic programming. Definitions of financial risk and downside risk are adapted. Using these definitions, financial risk management constraints are introduced and a new two-stage stochastic programming model is established. Case studies illustrate the applicability of such financial risk management. Trade-offs between expected cost and risk are also analyzed.
Keywords
Supply Chain, Financial Risk Management, Downside Risk, Uncertainty
To cite this article
De Gu, Jishuai Wang, Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty, Automation, Control and Intelligent Systems. Vol. 3, No. 6, 2015, pp. 112-117. doi: 10.11648/j.acis.20150306.13
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