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Chinese Journal of Management Science ›› 2009, Vol. 17 ›› Issue (2): 66-70.

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Manufacturer’s Procurement Decision Based on CVaR for Supplier with Default Risk

AN Zhi-yu1,2, ZHOU Jing1   

  1. 1. School of Management and Engineering, Nanjing University, Nanjing 210093, China;
    2. School of Economics and Management, Nanjing University of Science and Technology, Nanjing 210094, China
  • Received:2008-07-07 Revised:2009-02-16 Online:2009-04-30 Published:2009-04-30

Abstract: Considering the suppliers with both default risk and uncertain demand,this paper proposes a model for procurement decision based on the conditional value-at-risk (CVaR) model.The impact on the procurement decision from the supplier's reliability,the manufacturer's parameter of risk,the price and the losing of opportunity is analyzed.

Key words: supply chain disruption, CVaR, optimal procurement, risk management

CLC Number: