A Theoretical Framework for a Simulation-Based Analysis of Supply Chain Risk Management

Supply chain management under uncertainty and risk has become the target of extensive research. A review of the corresponding literature indicates mainly theoretical approaches, which attempt to provide solutions to certain problems. In this chapter, a theoretical framework of supply chain risks analysis is proposed. Within this framework, studied risks are determined by possible disruptions that affect supply chain ability to function normally. Thus, supply chain performance parameters are taken as a basis for a risk measurement system. Correspondingly, supply chain reliability parameters and performance fluctuations are studied in order to manage risks. A possible implementation of the proposed framework is discussed through the presentation of a simulation example. Still, the evaluation of the proposed framework’s practical application remains an item of the future research agenda. The ultimate objective of the research presented in this chapter is the elaboration of a software solution for supply chain modelling and risk evaluation.