Risk Management in Chemical Industry Supply Chain

In this paper, we present literature review of risk management. Then we develop a conceptual model for risk management in chemical industry supply chain. Finally a case study is presented. In this case, we study a chemical industry supply chain, which consists of palm plantation, oils Corporation, fine chemical plant, daily chemical plant, distributor, retailer, and customer. After visiting a fine chemical plant and a daily chemical plant in Shanghai, we identify five risks (environment risk, inventory risk, supply risk, capacity risk, and information risk) and their drivers. Moreover we use AHP to assess and rank three key risks-environment risk, inventory risk and supply risk. We find environment risk is the most important risk to be managed. In the end we present corresponding risk control measures such as reinforcing the management of safe production, setting up appropriate safety stock, and contacting with more than one large-scale suppliers etc