Author(s)

Min Jiang, Rui Shen, Zhiqing Meng

College of Economics and Management, Zhejiang University of Technology, Hangzhou, China.

The paper develops a multi-product supply chain model where supplyproduction- sale integration is considered and the worst-case conditional value at risk (WCVaR) model is applied as the risk measure, and also provides a coordination strategy to minimize the supply chain risk. First, by analyzing the source demand of market in the supply chain, three WCVaR models consisting of three tiers—the supplier, the manufacturer and the retailer in the supply chain are proposed to measure the market risk. Then, a risk coordination model is proposed to cover the whole supply chain including producing, order, inventory and sales. Finally, the numerical results show the efficiency of the model in mitigating risks. And we make a summary of supply chain risk management strategies.

WCVaR Model, Supply Chain, Supply-Production-Sale Integration, Multi Product

Jiang, M. , Shen, R. and Meng, Z. (2017) WCVaR-Based Risk Coordination Model for Multi-Product Supply. Open Journal of Business and Management, 5, 641-652. doi: 10.4236/ojbm.2017.54054.