Document Type



Doctor of Philosophy


Business Administration

Date of Defense


Graduate Advisor

L. Douglas Smith, Ph.D.


Donald C. Sweeney, II, Ph.D.

Lorenna Bearzotti, Ph.D.

Haitao Li, Ph.D.


The objective of this dissertation is to develop and test an approach that will quantify the level of risk in the supply chain, evaluate the cost and impact of risk mitigation strategies, validate event management protocols pre-implementation, and optimize across a portfolio of risk mitigation strategies. The research integrates a Mixed Integer Linear Programming (MILP) model and a Discrete Event Simulation model to investigate a production-inventory-transportation problem subject to risk. The MILP model calculates the optimal Net Profit Contribution of the supply chain in the absence of risk. Deviation risks are introduced as volatility in final demand and lead times, with lead time volatility affecting raw material lead times from suppliers to manufacturing plants and finished goods lead times from manufacturing plants to the warehouses. Disruption risks are modelled as temporarily impeding production at the manufacturing plants, in-bound distribution of raw materials from suppliers to the manufacturing plants, and out-bound distribution of finished goods from the manufacturing plants to warehouses. Computational experiments are run to examine the impact of risk on the supply chain. Further experiments explore the consequences of three risk mitigation strategies (inventory placement, expediting, and production flexibility) on supply chain performance in the presence of risk with the aim of discovering whether one strategy dominates or whether a portfolio approach to risk mitigation performs best. In sum, this research seeks to develop a framework that can inform efforts in understanding, planning for and controlling risk in the supply chain.

OCLC Number