An Adaptive Model for Assessing Supply Chain Risk

Abstract

This research builds upon our previous research by extending a risk-indexing model to an adaptive indexing model, taking into account several additional factors. The new adaptive risk model includes the analysis of varying levels of contributions among firms, different consequences of the sub-product groups, the effects of learning over time, the effects of economic change over time, and the effects of multiple product lines. The research concludes with the rationale for the inclusion of these factors and the development of the adaptive risk model.

An Integrated Mathematical Model for Supplier Selection

“…The objective function (5) minimizes the risk associated with the procurement of the needed parts from the suppliers. The applied risk equation is a modification of the problem studied by Kenyon and Neureuther (2012). Furthermore, the objecttive function (6) maximizes the importance of suppliers.…”