Research on Supply Chain Risks Management by Simulation Analysis

Today's supply chains characterize as high uncertainty, high customer expectations, and high vulnerability. Supply chain risk management (SCRM). has been an important area of supply chain management. Internal risks resulted from the interaction among supply chain members act as the major impact on supply chain coordination, but they are difficult to be modeled and analyzed if using traditional mathematical methods. Simulation is a valuable tool for modeling and analyzing the members' behaviors from strategic level decisions to individual production processes. After reviewing the application of simulation on supply chain management, this paper proposes an excel-based supply chain simulation model, which provides a useful tool to model supply chain risk factors and to simulate the interactions among members' production strategies.