A Case Study of Global Supply Chain Risk Management

Today due to the social, political and environmental pressures a lot of companies have outsourced production to oversea manufacturers, and the complexities of the chains have been mounting especially quickly. Managing risk in the supply chain has never been as challenging as it is today. In this paper a comprehensive quantitative risk evaluation and mitigation model in global supply chains is developed which from several disciplines - supply chain management, logistics, economics and international business. A case study is provided which in view of a company whose products are manufactured in China and sold in U.S. The paper identified four risks including supply risk, operational risk, demand risk and financial risk and modeled as probabilistic distributions of the outcome. Moreover, the paper implemented and integrated some risk mitigation strategies such as hedging and speculation in the simulation model for further investigation.