Simulation-Based Risk Measurements In Supply Chains

Because of modern supply chains complexity, supply chain managers are presently making decisions which are associated with some risk. This paper discusses risk problem in supply chains and presents a supply chain risk assessment approach. The Beer Game model, which is a simplified example of a supply chain, is used to demonstrate application of the suggested risk assessment approach. Two risk events are taken into account: inventory excessive accumulation and backordering. Simulation experiments with the computerised version of the Beer Game show that the approach presented can be used for assessing supply chain risk; at the same time, it is possible to illustrate risk occurrence using the Beer Game model.