Mitigating Uncertainty through Purchasing Strategy‐A Case Study of an Automotive Company

Chih‐Ying Hsieh ； Amy Chen ； H.M. Wee

《International Journal of Advances in Management Science》 2卷4期 (2013/11) Pp. 183-186

並列摘要

Disaster studies have received a lot of attention recently. This paper aims to identify an optimal regional purchasing strategy in an uncertain disaster environment using automotive company as an example. This paper develops a model by Weighted Goal Programming (WGP) to analyse the required resource and the optimal resource location to mitigate the disaster damage in the supply chain. The findings evaluated by Weighted Goal Programming (WGP) are: (1) the automotive company needs to set up additional supply resource in Asian region, (2) appropriate location in Asian region has been identified for the additional supply resource; being assessed by lower logistic costs, flexible delivery and production capacity constraint, and (3) the disaster damage mitigation is also highlighted as second priority in long‐term business strategies. This case study promotes more preparedness of the automotive industry for better management of unpredictable disaster in the supply chain through regional purchasing strategy. It mitigates damage and considers long‐term business strategies and decisions. This friendly model can provide managing insights to other industries and supply chain in risk management.

並列關鍵字

Disaster ； Purchasing Strategy ； Supply Chain Risk Management (SCRM) ； Weighted Goal Programming (WGP)