System dynamic methodological approach for design and analysis of risk in supply chain

Cut throat competition in the market, makes efficient utilization of resources, key to become price leader and satisfy the customer. This leads organization's attentiveness towards supply chain. Efficient supply chain is demand of the hour for successful organization. But several types of risks present in the supply chain can hamper the overall planning to satisfy the customer. Determination of risk and plan according to it helps the organization to achieve its goal. Challenges and risks in supply chain are unpredictable and dynamic in nature. System dynamics is a noble approach to study the dynamics of the supply chain. Here system dynamic methodology is used to study the supply chain. To predict and measure the supply chain risk is a major challenge throughout the industry. Here 4 echelon supply chain is designed to investigate two different policies alternatives. Further efficiencies of these supply chains are compared by statistical testing with 95% confidence interval. This facilitates the organization to select competent policy for supply chain management and help in designing an efficient supply chain to the organization.