On the Measure Method of Electronic Supply Chain Risk

Abstract

With the increasing emphasis on supply chain vulnerabilities, effective mathematical tools for analyzing and understanding supply chain risk management are now attracting much attention. This paper presents a model of risk control in equipment manufacturing supply chain. We provide a new solution methodology using unascertained mathematics and fuzzy theory to measure risk in electronic manufacturing supply chain, the model combines the unascertained theory with fuzzy method. Many risk assessment methods only take account of the occurrence probability of risk or only consider the loss magnitude caused by risk. We construct the model considering the occurrence probability and the loss magnitude of risk simultaneously in single model using risk utility function. In our model, the unascertained mathematical is applied to measure occurrence probability of electronic manufacturing supply chain risk, and the fuzzy theory is utilized to solve loss magnitude caused by electronic manufacturing supply chain risk, then the whole risk of electronic manufacturing supply chain is given according to the mean of risk by the utility function of the risk probability and the risk loss.