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Operations and Supply Chain Management
Singapore Management University
Research Collection School Of Computing and Information Systems
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Risk-Aware Procurement Optimization In A Global Technology Supply Chain, Jonathan Chase, Jingfeng Yang, Hoong Chuin Lau
Risk-Aware Procurement Optimization In A Global Technology Supply Chain, Jonathan Chase, Jingfeng Yang, Hoong Chuin Lau
Research Collection School Of Computing and Information Systems
Supply chain disruption, from ‘Black Swan’ events like the COVID-19 pandemic or the Russian invasion of Ukraine, to more ordinary issues such as labour disputes and adverse weather conditions, can result in delays, missed orders, and financial loss for companies that deliver products globally. Developing a risk-tolerant procurement strategy that anticipates the logistical problems incurred by disruption involves both accurate quantification of risk and cost-effective decision-making. We develop a supplier-focused risk evaluation metric that constrains a procurement optimization model for a global technology company. Our solution offers practical risk tolerance and cost-effectiveness, accounting for a range of constraints that realistically …