Application of Portfolio Theory in Controlling Supply Chain Crisis

  • Benxin Lao
  • Ningjie Liu
Part of the IFIP — The International Federation for Information Processing book series (IFIPAICT, volume 251)


Supplying chain cooperation has already become an important strategy that enterprises use to tackle market competition; however, the supply chain crisis caused by supply chain risk makes the supply chain operation of enterprises very fragile. This paper applies Portfolio Theory to explain the suppliers’ combination plays an important role in dispersing the supplying chain risk and controlling its crisis, and point out, on the basis of analyzing the suppliers’ expected return and risk, through choosing certain amount of suppliers and distributing the proportion of volume of purchase rationally, enterprises can find the efficiency front of suppliers combination.


Supply Chain Systematic Risk Portfolio Theory Cooperative Partner Supply Chain System 
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Copyright information

© International Federation for Information Processing 2007

Authors and Affiliations

  • Benxin Lao
    • 1
  • Ningjie Liu
    • 2
  1. 1.ERP LaboratoryGuangxi University of Finance and EconomicsNanningChina
  2. 2.Industrial and Commercial ManagementGuangxi University of Finance and EconomicsNanningChina

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