Supply Chain Risk Research Based On Arena Simulation

In recent years many supply chain risk incidents happened, whose outcomes are very serious. This phenomenon attracts lots of scholars’ and enterprises’ attention. On the one side global uncertainties are increasing, natural disasters and social political turbulences occur all the time, which are damaging the global supply chain operation performance; on the other side many kinds of management trends are making supply chains more prone to risk gradually, global purchasing and producing, outsourcing, decreasing supplier quantity and reducing inventory, these trends are making supply chain more vulnerable. Supply chain itself has complex organization, involving many partners, whose invisible inner operation processes make risks really unclear. In this paper by using the Arena simulation software we built a typical supply chain model and designed performance index. Through the comparison of the changes of different indexes before and after risk, we could find much information how the risk influence the whole chain. Then we discussed the function of inventory and quick response in coping with risk. At last we put forth a secure and resilient supply chain to response to risk, which has many detailed measures. The adoption of simulation software is an innovation, which can be widely used in theory and practice analysis, and it’s also very useful in supply chain research. Supply chain risk is a complicated field which still has many unsolved problems, which need people to put more attention in it.