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Mitigating Supply Chain Risks by Evaluating Supplier Bankruptcy Probabilities Through Web Services and the Black-Scholes-Merton Model


Mitigating Supply Chain Risks by Evaluating Supplier Bankruptcy Probabilities Through Web Services and the Black-Scholes-Merton Model

Barrad, Sherif and Valverde, Raul (2015) Mitigating Supply Chain Risks by Evaluating Supplier Bankruptcy Probabilities Through Web Services and the Black-Scholes-Merton Model. wseas transactions on information science and applications, 12 . pp. 186-193. ISSN 2224-3402

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Abstract: Industry consolidation and globalization represents a challenge for procurement organizations who typically become either recipients of the acquired company’s supplier base or are directly responsible for this increase by securing new suppliers to meet the operational demands of a global supply chain. An increased supplier base not only makes it more difficult to manage suppliers but also represents higher supply chain risks. The proposed model attempts to proactively evaluate bankruptcy probabilities of suppliers by capturing financial information using web services, computing this data using a modified equation version of a well-known financial model and producing risk potentials, in percentage points, for supplier bankruptcies. The study clearly shows the usefulness of the prototype when operating in a Service Oriented Architecture and offered to end users as a leading indicator of risk.

Divisions:Concordia University > John Molson School of Business > Decision Sciences and Management Information Systems
Item Type:Article
Authors:Barrad, Sherif and Valverde, Raul
Journal or Publication:wseas transactions on information science and applications
Date:20 August 2015
Keywords:Web Services, Black-Scholes-Merton, Supply Chain Finance, Supply Chain Risk Management
ID Code:980313
Deposited By: Raul Valverde
Deposited On:24 Aug 2015 14:56
Last Modified:18 Jan 2018 17:51


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