Research Article
Stability Warning Method for the Supply Chain in the Electrical Equipment Industry
@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
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.