An optimization-enhanced dynamic approach for supply chain risk analysis

Ke Sun, James T. Luxhøj

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Globalization brings opportunities and challenges for supply chain involved companies. Supply chains may be fragile when sudden business environment fluctuations occur. Various quantitative analysis models are built to understand and mitigate supply chain risks. Dynamic Flow Bayesian Networks (DFBNs) are created by integrating Dynamic Bayesian Networks and System Dynamics to demonstrate the feedback flows of a supply chain with stochastic risks considered. However, it has limited ability in suggesting straightforward solutions for mitigating the risks. An Optimized Dynamic Flow Bayesian Network (ODFBN) incorporates mathematical optimization with the original DFBN. An ODFBN is a tool that offers business performance improvement strategies for supply chains by establishing objectives of a supply chain and constraints on the flows. Optimization-enhanced risk-influenced dynamic flow variables provide supply chain practitioners with a more effective reference for their business strategy. This paper presents an application of the ODFBN for a two-stage supply chain. Comparison between the ODFBN and the DFBN is illustrated with a discussion of preliminary modeling results.

Original languageAmerican English
Title of host publication67th Annual Conference and Expo of the Institute of Industrial Engineers 2017
EditorsHarriet B. Nembhard, Katie Coperich, Elizabeth Cudney
PublisherInstitute of Industrial Engineers
Pages211-216
Number of pages6
ISBN (Electronic)9780983762461
StatePublished - 2017
Event67th Annual Conference and Expo of the Institute of Industrial Engineers 2017 - Pittsburgh, United States
Duration: May 20 2017May 23 2017

Publication series

Name67th Annual Conference and Expo of the Institute of Industrial Engineers 2017

Conference

Conference67th Annual Conference and Expo of the Institute of Industrial Engineers 2017
Country/TerritoryUnited States
CityPittsburgh
Period5/20/175/23/17

ASJC Scopus subject areas

  • Industrial and Manufacturing Engineering

Keywords

  • Dynamic Bayesian Network
  • Hybrid model
  • Mathematical optimization
  • Supply chain risk analysis
  • System Dynamics

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