Simulation of Supply Chain Risk

David L. Olson and Desheng Dash Wu
Additional contact information
David L. Olson: University of Nebraska
Desheng Dash Wu: Stockholm University

Chapter 5 in Enterprise Risk Management Models, 2017, pp 55-73 from Springer

Abstract: Abstract Supply chains involve many risks. Modeling that risk focuses on probability, a well-developed analytic technique. Simulation is the most flexible management science modeling technique. It allows making literally any assumption you want, although the trade-off is that you have to work very hard to interpret results in a meaningful way relative to your decision. Because of the variability inherent in risk analysis, simulation is an obviously valuable tool for risk analysis. There are two basic simulation applications in business. Waiting line models involve queuing systems, and software such as Arena (or many others) are very appropriate for that type of modeling. The other type is supportable by spreadsheet tools such as Crystal Ball, demonstrated in this chapter. Spreadsheet simulation is highly appropriate for inventory modeling as in push/pull models. Spreadsheet models also are very useful for system dynamic simulations.

Keywords: Supply Chain; Shortage Cost; Vendor Management Inventory; Purchasing Cost; Supply Chain Risk (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sptchp:978-3-662-53785-5_5

Ordering information: This item can be ordered from
http://www.springer.com/9783662537855

DOI: 10.1007/978-3-662-53785-5_5

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().