Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty

De Gu; Jishuai Wang

doi:doi:10.11648/j.acis.20150306.13

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Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty

De Gu, Jishuai Wang

Published in Automation, Control and Intelligent Systems (Volume 3, Issue 6)

Received: 20 December 2015 Published: 21 December 2015

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Abstract

This paper presents a methodology to include financial risk management for the design of multiproduct, multi-echelon supply chain networks under uncertainty. The method is in the framework of two-stage stochastic programming. Definitions of financial risk and downside risk are adapted. Using these definitions, financial risk management constraints are introduced and a new two-stage stochastic programming model is established. Case studies illustrate the applicability of such financial risk management. Trade-offs between expected cost and risk are also analyzed.

Published in	Automation, Control and Intelligent Systems (Volume 3, Issue 6)
DOI	10.11648/j.acis.20150306.13
Page(s)	112-117
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Supply Chain, Financial Risk Management, Downside Risk, Uncertainty

References

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[8]	D. C. Cafaro, I. E. Grossmann, Strategic planning, design, and development of the shale gas supply chain network. AIChE Journal, 2014, 60(6): 2122-2142.
[9]	M. A. Kalaitzidou, P. Longinidis, P. Tsiakis, M. C. Georgiadis, Optimal Design of Multiechelon Supply Chain Networks with Generalized Production and Warehousing Nodes. Industrial & Engineering Chemistry Research, 2014, 53(33): 13125-13138.
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[11]	M. Talaei, B. F. Moghaddam, M. S. Pishvaee, A. Bozorgi-Amiri, S. Gholamnejad, A robust fuzzy optimization model for carbon-efficient closed-loop supply chain network design problem: A numerical illustration in electronics industry. Journal of Cleaner Production, 2015.
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[13]	A. Barbaro, M. J. Bagajewicz, Managing financial risk in planning under uncertainty. AIChE Journal, 2004, 50 (5): 963-989.
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[15]	S. R. Cardoso, A. P. Barbosa-Póvoa, S. Relvas. Integrating Financial Risk Measures into the Design and Planning of Closed-loop Supply Chains. Computers & Chemical Engineering, 2016, 85: 105-123.

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APA Style

De Gu, Jishuai Wang. (2015). Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty. Automation, Control and Intelligent Systems, 3(6), 112-117. https://doi.org/10.11648/j.acis.20150306.13

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ACS Style

De Gu; Jishuai Wang. Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty. Autom. Control Intell. Syst. 2015, 3(6), 112-117. doi: 10.11648/j.acis.20150306.13

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AMA Style

De Gu, Jishuai Wang. Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty. Autom Control Intell Syst. 2015;3(6):112-117. doi: 10.11648/j.acis.20150306.13

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@article{10.11648/j.acis.20150306.13,
  author = {De Gu and Jishuai Wang},
  title = {Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty},
  journal = {Automation, Control and Intelligent Systems},
  volume = {3},
  number = {6},
  pages = {112-117},
  doi = {10.11648/j.acis.20150306.13},
  url = {https://doi.org/10.11648/j.acis.20150306.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.acis.20150306.13},
  abstract = {This paper presents a methodology to include financial risk management for the design of multiproduct, multi-echelon supply chain networks under uncertainty. The method is in the framework of two-stage stochastic programming. Definitions of financial risk and downside risk are adapted. Using these definitions, financial risk management constraints are introduced and a new two-stage stochastic programming model is established. Case studies illustrate the applicability of such financial risk management. Trade-offs between expected cost and risk are also analyzed.},
 year = {2015}
}

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TY  - JOUR
T1  - Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty
AU  - De Gu
AU  - Jishuai Wang
Y1  - 2015/12/21
PY  - 2015
N1  - https://doi.org/10.11648/j.acis.20150306.13
DO  - 10.11648/j.acis.20150306.13
T2  - Automation, Control and Intelligent Systems
JF  - Automation, Control and Intelligent Systems
JO  - Automation, Control and Intelligent Systems
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PB  - Science Publishing Group
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AB  - This paper presents a methodology to include financial risk management for the design of multiproduct, multi-echelon supply chain networks under uncertainty. The method is in the framework of two-stage stochastic programming. Definitions of financial risk and downside risk are adapted. Using these definitions, financial risk management constraints are introduced and a new two-stage stochastic programming model is established. Case studies illustrate the applicability of such financial risk management. Trade-offs between expected cost and risk are also analyzed.
VL  - 3
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ER  -

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Author Information

De Gu

Key Laboratory of Advanced Process Control for Light Industry (Ministry of Education), Institute of Automation, Jiangnan University, Wuxi, China
Jishuai Wang

Suzhou Institute of Biomedical Engineering and Technology, Chinese Academy of Sciences, Suzhou, China

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APA Style

De Gu, Jishuai Wang. (2015). Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty. Automation, Control and Intelligent Systems, 3(6), 112-117. https://doi.org/10.11648/j.acis.20150306.13

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ACS Style

De Gu; Jishuai Wang. Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty. Autom. Control Intell. Syst. 2015, 3(6), 112-117. doi: 10.11648/j.acis.20150306.13

Copy | Download

AMA Style

De Gu, Jishuai Wang. Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty. Autom Control Intell Syst. 2015;3(6):112-117. doi: 10.11648/j.acis.20150306.13

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@article{10.11648/j.acis.20150306.13,
  author = {De Gu and Jishuai Wang},
  title = {Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty},
  journal = {Automation, Control and Intelligent Systems},
  volume = {3},
  number = {6},
  pages = {112-117},
  doi = {10.11648/j.acis.20150306.13},
  url = {https://doi.org/10.11648/j.acis.20150306.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.acis.20150306.13},
  abstract = {This paper presents a methodology to include financial risk management for the design of multiproduct, multi-echelon supply chain networks under uncertainty. The method is in the framework of two-stage stochastic programming. Definitions of financial risk and downside risk are adapted. Using these definitions, financial risk management constraints are introduced and a new two-stage stochastic programming model is established. Case studies illustrate the applicability of such financial risk management. Trade-offs between expected cost and risk are also analyzed.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Financial Risk Management for Designing Multi-echelon Supply Chain Networks Under Demand Uncertainty
AU  - De Gu
AU  - Jishuai Wang
Y1  - 2015/12/21
PY  - 2015
N1  - https://doi.org/10.11648/j.acis.20150306.13
DO  - 10.11648/j.acis.20150306.13
T2  - Automation, Control and Intelligent Systems
JF  - Automation, Control and Intelligent Systems
JO  - Automation, Control and Intelligent Systems
SP  - 112
EP  - 117
PB  - Science Publishing Group
SN  - 2328-5591
UR  - https://doi.org/10.11648/j.acis.20150306.13
AB  - This paper presents a methodology to include financial risk management for the design of multiproduct, multi-echelon supply chain networks under uncertainty. The method is in the framework of two-stage stochastic programming. Definitions of financial risk and downside risk are adapted. Using these definitions, financial risk management constraints are introduced and a new two-stage stochastic programming model is established. Case studies illustrate the applicability of such financial risk management. Trade-offs between expected cost and risk are also analyzed.
VL  - 3
IS  - 6
ER  -

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