Research On Risk Management Of Materials Supply Chain In Grid Industry

Electrical energy is the essential power source of industrial production and social life,and the stability of the power supply is directly related to a steady status of the socialproduction and living. Thus the grid enterprises, who are the controllers of powertransmission and whose performances incur a direct impact on the stability of theelectricity supply, usually attach great importance to risk management of the whole supplychain, especially for emergency responding issues. From the angle of the whole supplychain, this paper analyzes the supply chain structure of the power industry, recognizes thatthere are two types of supply chains existed, of which one is the electricity supply chainand the other, is materials supply chain. In the latter case, most of the chain notes aresubsidiaries of the State Grid Group, composing the basis of the electricity supply chain.The materials supply exerts a direct influence on the construction and maintenance of thepower grid, and thus indirectly affect the supply chain of electrical energy. Therefore, astudy on materials supply chain risk management is meaningful in maintaining thestability of materials supply and reducing relevant risk loss.Literatures in grid risk management, however, were too much focused on how torespond to the damage of vital natural disasters or other emergencies, and issues ofhandling the economic risk of the power transactions, while ignoring the risks in dailyoperations of supply chain. By investigating the process of the grid companies’ materialsmanagement, this research builds the framework of a process-based grid material supplychain risk management, with an application of the supply chain risk management relatedtheories. Within this framework, by focusing on the operation processes of materialssupply, power company managers would be able to handle the materials supply chain riskscomprehensively by a few steps including risk identification, risk assessment, riskresponse, risk monitoring and early warning. In this paper, the author firstly indentifies and categorizes the risks in materials supply chain by using the cause-and-effect diagram,and then establishes a supply chain risk assessing model based on AHP group-decision.The work goes on by constructing a ‘risk response diagram’ model, which has a wellconsideration of the extension of collaboration among the supply chain members. Finally,based on the artificial neural network algorithm, a risk warning model is built to establishthe early warning mechanism, which will help the power grid companies to monitor therisks in their daily operations.