Steel Supply Chain Robustness Analysis Under Uncertain Supply Of Iron Ore

Steel supply chain includes raw material supply, steel production, steel sales three basic links, involving suppliers of raw materials, steel producers, steel distribution and retail companies, end users and logistics companies. The object of this paper is a three-level manufacture-oriented mode steel supply chain, consisting of raw material suppliers, steel producers and end users. Due to the complexity of the steel supply chain and the openness of its environment, in the course of the operation will inevitably encounter various uncertainties from inner workings and external events. These uncertainties cause the risk of the supply chain abnormal operation and even breakage. Therefore, to improve the ability to resist risks of steel supply chain, from the inside of supply chain itself, which enhance the robustness of the supply chain, is crucial.By analyzing the basic structure and characteristics of steel supply chain, it can be seen that the supply of iron ore for steel supply chain, there is a high uncertainty in the price, logistics, quantity and so on. In this paper, based on supply chain uncertainty theory, supply chain robustness theory and system dynamics theory, it researches and analysis the steel supply chain robustness problem under supply of iron ore uncertainty. According to the connotation of steel supply chain robustness, it determines the steel supply chain robustness criterions, namely the total cost of steel supply chain and unsatisfied demand of the customer. And it establishes the relationship between uncertainties and robustness in the steel supply chain. Based on the results of the previous studies, this paper establishes causality loop diagrams and system flow diagrams of steel supply chain robustness analysis. And do the research of robust scenario analysis combined with simulation example under the interference of price, logistics and quantity uncertainties of iron ore supply. Finally, find out the conditions which can guarantee the robustness of the supply chain system. The result of this research can provide a good basis for the steel enterprises robust control and robust strategies development.