Study on the strategies of supply chain risk management

An emergent event has a great influence on the supply chain and results in a large change in market demand. The supply chain consisting of one retailer and one risk aversion supplier is researched. In this supply chain, this paper gives the optimal strategy to deal with emergencies, compares the optimal benefit after adjusting the supply chain with the benefit not adjusting the supply chain and come to a conclusion that ¿adjustment¿ is the optimal strategy.