Supply chain disruption assessment based on the perspective of trade-off in newsvendor model

Abstract

This paper centers on supply chain assessment, following the cost-income principle and taking the cost trade-off into account. The analysis tool is newsvendor model and its perspective-finding the critical point, which in tradition model stands for the demarcation point of profit but in this paper the is the least costs considering disruption costs and expected revenues. In this way, this paper tries to find out the optimum method to assess supply chain risks. © Springer-Verlag Berlin Heidelberg 2013.