Supply Chain Risk Study Under Price Fluctuation

Supply chain risk management has become the hottest topic in IE industry,but supply chain risk caused by price fluctuation has been seldom discussed.This paper can be divided into3main parts.In the first part, through study of previous paper in similar research area,summarize the information about supply chain risk and supply chain riskmanagement, including the definition, prevention and risk managementmethods. Then put forward the writer’s own opinion.In the second part, establish the model of profit fluctuation risk under retailprice fluctuation for three-stage supply chain. Put forward the way to calculatethe risk and the transmission effect between enterprises of the supply chain. Inthe example analysis, assume the retail price obeys normal distribution. Underthis assumption, calculate the transmission effect and link it with profit of onegood.In the third part, establish the model of inventory cost risk under retailprice fluctuation for two-stage supply chain. The model include two part, thefirst one is to calculate the optimal inventory strategy under (Q,R) strategy, thesecond part is to calculate the inventory cost risk for this strategy under retailprice fluctuation. Through this model, the way to calculate the inventory costrisk, inventory cost fluctuation risk and the transmission effect is given. In theexample analysis part, calculate81examples, and analysis the effect ofdifferent parameter for the inventory cost risk.