Abstract
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.
Chapter PDF
References
P.L Song, “Study on the modern portfolio theory”, Guizhou finance and economics institute journal, 2000 (3),P14–17 (in Chinese)
Y.G Cao, Securities investment study, Beijing University Press, 1993, P119–136(in Chinese)
Y.H Liang, “Research on crisis forewarns index system of supply chain”, Information magazine, 2006(5), P24–25 (in Chinese)
Stauffer, “Risk: the weak link in your chain”, Harvard Management Update, March 2003
Formation Workshop, “Enterprise and supply chain risk”, Management & Continuity Forum, America, Feb 19, 2003
Alain Halley, Jean Nollet, “The supply chain: the weak link for some preferred supplier”, The journal of supply chain management, summer, 2002, P39–47
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2007 International Federation for Information Processing
About this paper
Cite this paper
Lao, B., Liu, N. (2007). Application of Portfolio Theory in Controlling Supply Chain Crisis. In: Wang, W., Li, Y., Duan, Z., Yan, L., Li, H., Yang, X. (eds) Integration and Innovation Orient to E-Society Volume 1. IFIP — The International Federation for Information Processing, vol 251. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-75466-6_2
Download citation
DOI: https://doi.org/10.1007/978-0-387-75466-6_2
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-75465-9
Online ISBN: 978-0-387-75466-6
eBook Packages: Computer ScienceComputer Science (R0)