A study on supply chain risk management for a low-frequency large-scale disaster

(Experimental evaluation of a production and transportation scheduling method)

Abstract

This research proposes a scheduling strategy for suppliers to constantly obtain profits in global supply chains, in case where large scale disasters occasionally occur or not. Suppliers in the previous supply chain models minimize tardiness of ordered products in order to enter into a lot of contracts and reduce penalty charges for delays. A prototype of supply chain simulation system is developed to evaluate scheduling strategies of suppliers. We evaluate several scheduling strategies, such as the minimization of both the tardiness and the flow time through computational simulation in order for suppliers to find a suitable scheduling strategy in which the suppliers can manufacture the ordered products and deliver them before the occurrence of unpredictable disasters.