Risk management in supply networks using monte-carlo simulation
WSC '05 Proceedings of the 37th conference on Winter simulation
Stress testing a supply chain using simulation
WSC '05 Proceedings of the 37th conference on Winter simulation
Computers and Industrial Engineering
Modeling and simulating supply chain schedule risk
Proceedings of the Winter Simulation Conference
Exogenous risk analysis in global supplier networks: Conceptualization and field research findings
Information-Knowledge-Systems Management - Enterprise Transformation: Manufacturing in a Global Enterprise
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We present a model constructed for a large consumer products company to assess their vulnerability to disruption risk and quantify its impact on customer service. Risk profiles for the locations and connections in the supply chain are developed using Monte Carlo simulation, and the flow of material and network interactions are modeled using discrete-event simulation. Capturing both the risk profiles and material flow with simulation allows for a clear view of the impact of disruptions on the system. We also model various strategies for coping with the risk in the system in order to maintain product availability to the customer. We discuss the dynamic nature of risk in the network and the importance of proactive planning to mitigate and recover from disruptions.