Monte Carlo simulation based approach to manage risks in operational networks in green supply chain

Abstract

Different green supply chain (GSC) operational activities may involve different risks and risk factors and or drivers. Its effect could be delay in order, quality damage or may even loss in business, if managers do not account them on timely. To meet the consequences, therefore, in this paper, we attempt to focus on the operational GSC risk evaluation and management by capturing of uncertainty and evaluating the risks by means of simulation to demonstrate the delay/disturbance consequences of the risk (i.e., the loss in business). This work follows a procedure in which, initially, the various uncertainties have been identified and assessed. Later, a risk evaluation has been followed in which the Monte Carlo Simulation (MCS) results exemplify the delay/disturbance consequence of the risk is carried out. Inputs in this research are taken from a GSCM case example of an Indian poly plastic manufacturing company. © 2014 Published by Elsevier Ltd.