Supplier Selection Under Disruption Risk With Discount Or Stochastic Demend

At present:due to the lack of effective supply chain risk management, China’s manu-facturing industries are facing many difficulties, such as poor corporate earnings, high cost, and so on. Therefore, how to manage and control supply chain risk is ilnportant to en-hance the international competitiveness of China’s manulfacturing industries.Supply chain risk is mainly related to risks and uncertainties,foeusing on disruption risk and demand uncertainty.In practice suppliers offer price discounts, based on total quantity or total value of ordered parts.On the other hand,orde demands are changing with the market fluctuation. For the lack of existing disruption risk model that didn’t consider discount and consider constant order demand, this paper addresses supplier selection under supply chain risk, considering disruption risk model with discount or stochastic order demand respectively. Supplier selection and order allocation is based011the price, quality and delivery reliability of the purchased parts. Given a set of customer orders of products, decision-makers need to deeide from wllich suppliers to buy the custom parts needed for each customer order to minimlize the total cost and ease supply disruption risk.Furtherl y, Tllis paper apply computer simulation technology to study the described issues,which are expressed as the mixed integelr programming, and the value at risk and conditional value at risk is used to control the risk of supply disruptions. The proposed methods is able to optimize the supply portfolio by calculating the value at risk of the unit part and minimize the expected worst-case unit part, and calculation examples are given Apply simulation optimization software CPLEX to give the results of model calculations, also compare and analyze the results of the disruption risk with discount or without discount and the results of the disruption risk with stochastic demand or constant demand.