Overview of supply chain risk management and the current issues of closed-loop supply chain in China

Abstract

The research on supply chain management has focused on such issues as supplier selection and negotiation, logistics and network design, inventory planning, etc. However, recent food safety incidences in China not only hurt consumers’ confidence, but also caused significant economic loss to the players throughout the food supply chain. Therefore, how to effectively measure and mitigate supply chain risk has become an important research topic, which garners the interests of researchers and practitioners. The path toward sustainability to demonstrate environmental and social responsibility has led to an increasing attention to the lifecycle of a product with a focus on value-added recovery activities. However, besides the risks encountered in traditional supply chains (or, sometimes referred to as the forward supply chain), the CLSC bears additional layer of risks if the products are not properly recycled. In this paper, we will provide an overview of both supply chain and CLSC risks in China.