Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8–10, 2023, Guangzhou, China

Research Article

Stability Warning Method for the Supply Chain in the Electrical Equipment Industry

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  • @INPROCEEDINGS{10.4108/eai.8-12-2023.2344804,
        author={Shanshan  Wu and Xuyang  Wang and Guoyuan  Zhang and Chumeng  Sun},
        title={Stability Warning Method for the Supply Chain in the Electrical Equipment Industry},
        proceedings={Proceedings of the 5th Management Science Informatization and Economic Innovation Development Conference, MSIEID 2023, December 8--10, 2023, Guangzhou, China},
        publisher={EAI},
        proceedings_a={MSIEID},
        year={2024},
        month={4},
        keywords={supply chain management; value-at-risk; power grid enterprises; agreement inventory},
        doi={10.4108/eai.8-12-2023.2344804}
    }
    
  • Shanshan Wu
    Xuyang Wang
    Guoyuan Zhang
    Chumeng Sun
    Year: 2024
    Stability Warning Method for the Supply Chain in the Electrical Equipment Industry
    MSIEID
    EAI
    DOI: 10.4108/eai.8-12-2023.2344804
Shanshan Wu1,*, Xuyang Wang2, Guoyuan Zhang3, Chumeng Sun4
  • 1: Institute of Economics and Energy Supply and Demand. State Grid Energy Research Institute Co.Ltd
  • 2: State Grid Materials Co. Ltd
  • 3: State Grid Corporation of China
  • 4: North China Electric Power University
*Contact email: wushanshan@sgeri.sgcc.com.cn

Abstract

To better ensure the supply chain's effective operation in the electrical equipment industry, considering the significant fluctuations in raw material prices, this paper aims to optimize the risk warning mechanism for the electrical equipment supply chain. Firstly, under the assumption of other costs remaining constant, the focus is placed on the fluctuation of raw material prices for electrical equipment. A warning detection process based on profit margin is designed. Subsequently, considering the actual situation of the enterprise and the enterprise's flexible profit strategy, the paper draws inspiration from VaR theory to design a model for assessing the supplier's resilience to raw material price changes based on a vast number of fulfilled orders as an auxiliary warning method. Finally, management recommendations are provided for electrical equipment suppliers and power grid construction enterprises, facilitating better assurance of the stable operation of the supply chain in the electrical equipment industry in the future.