Risk minimization in supply chain networks

• In Event: SUPPLY-CHAIN RISK and RESILIENCY: Supply Chain Risk Mitigation

Abstract

We introduce a new two-stage model for integrated quantile functions. This framework leads to a bilinear optimization problem (P), a special case of which reveals a new model for the VaR minimization problem. We discuss various techniques to under- and over-estimate the optimal value of (P), in turn developing new lower and upper-estimators for VaR. We provide computational comparisons over supply chain network problems. This approach helps constructing supply chain networks which are more resilient to probabilistic disruptions occurring in the network.

Author

• Ashish Chandra, Illinois State University