Risk Management in Supply Chain using PetriNet

This paper is aimed at formalising an objective method to analyse and assess operational risk in a Supply Chain network. The proposed method exploits the analogy between the supply chain network and dynamical systems. We wish to identify the risky events characterising a general supply chain by constructing and studying its Petri Net. Here we have tried to simulate the Petri Net of the network through MATLAB so we can analyse the results to identify the risky events in the network and more importantly, the contribution of these risky events towards disruption of the system, i.e. stock-outs at the retailer end. We have applied the method to a single item, 3-stage Supply Chain and have tried to make the model more relevant by adding events such as partial-fulfilment of demand at the retailer stage and complete non-availability of transportation resources during scheduled servicing at the distributor and manufacturer stage, thereby making the model more robust and closer to reality.