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Global sensitivity analysis and aggregation of risk in multi-product supply chain networks

Kamil J. Mizgier

International Journal of Production Research, 2017, vol. 55, issue 1, 130-144

Abstract: Manufacturing firms manage complex supply chain networks which are exposed to a plethora of hazard events. An essential part of the risk management process is the calculation of the stand-alone risk exposures of the product-specific supply chains, but also of the entire multi-product system. In this paper, first, a global sensitivity analysis of the statistical supply chain risk model is conducted. This method helps the decision-makers to understand the risk of the model they are using. Second, a methodology for risk aggregation in multi-product supply chain networks is proposed. The real-world data is used to analyse and validate the model. Supply chain managers equipped with the proposed method will better cope with the risk in supply chains for different product configurations.

Date: 2017
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