Multi-Tier Supply Chain Risk Management via Dynamic Node Substitution
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Solution Overview
Problem
In multi-tiered supply chains, enterprises face difficulties in recognizing and managing risks that occur upstream or downstream, which can disrupt production plans and supply chains, leading to inefficiencies and reduced resilience.
Innovation Solution
A supply chain management system that uses arithmetic devices and storage devices to create and manage multi-tiered supply chain network information, detect risk occurrence nodes, and suggest substituting nodes to mitigate risks by analyzing product flow information and risk data, thereby presenting change plans to enhance supply chain resilience.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If enterprises focus on managing only direct suppliers, then management complexity is reduced, but supply chain risk visibility deteriorates
Solution Approach 1:
The patent segments the supply chain into multiple tiers (direct suppliers, indirect suppliers, and their respective suppliers) and creates separate management modules for each tier. The system divides risk management into distinct functions including risk identification, assessment, monitoring, and response planning for different supply chain levels, allowing enterprises to manage complexity through structured segmentation while maintaining comprehensive risk visibility.
Solution Approach 2:
The patent introduces an intermediary supply chain management system that acts as a mediator between enterprises and multi-tiered suppliers. This intermediary system collects, processes, and analyzes risk information from various supply chain tiers, translating complex supplier data into actionable risk intelligence that helps enterprises maintain visibility without being overwhelmed by management complexity.
2Loss of information
If enterprises expand supply chain monitoring to multi-tiered suppliers, then risk visibility is improved, but information acquisition difficulty increases
Solution Approach 1:
The patent implements a universal supply chain management platform that performs multiple functions including data collection, risk assessment, monitoring, and analysis across all supply chain tiers. This multi-functional system uses standardized data collection protocols and universal risk assessment criteria that can be applied consistently across direct and indirect suppliers, reducing the difficulty of information acquisition while maintaining comprehensive risk visibility.
Solution Approach 2:
The patent establishes feedback mechanisms where risk information flows from multi-tiered suppliers back to enterprises through the management system. The system continuously collects supplier data, analyzes risk levels, and provides feedback reports that highlight emerging risks. This feedback loop enables enterprises to maintain updated risk visibility without manually acquiring information from each supplier tier, as the system automatically gathers and processes the data.
3Reliability
If enterprises implement comprehensive supply chain risk management, then supply chain resilience is improved, but system complexity increases
Solution Approach 1:
The patent implements a dynamic supply chain risk management system that adapts to changing risk conditions and supply chain configurations. The system automatically adjusts monitoring intensity, risk assessment criteria, and response strategies based on real-time data and identified risk levels. This dynamic approach enhances supply chain resilience by enabling flexible response to emerging threats while managing system complexity through adaptive rather than static configurations.
Solution Approach 2:
The patent utilizes parameter changes in risk thresholds, monitoring frequencies, and assessment criteria to manage system complexity. The system allows enterprises to configure risk tolerance parameters and adjusts monitoring intensity based on risk levels - intensifying monitoring when risks are high and reducing it when risks are low. This parameter-based approach enables comprehensive risk management while maintaining manageable system complexity through configurable thresholds and adaptive parameters.
Data Source
AI summary
A supply chain management system is configured to create supply chain network information including information on a directed graph representing a multi-tiered supply chain network including tiers upstream and downstream of the target enterprise, acquire risk information on the multi-tiered supply chain network, detect, in the directed graph, a risk occurrence node influenced by a risk and a node of the target enterprise influenced by a defect of product supply at the risk occurrence node, search for a substituting node candidate for the risk occurrence node in a node group including a node of an enterprise outside the directed graph based on an item of the risk occurrence node, and present information on a change plan of the multi-tiered supply chain network obtained by adding the substituting node candidate to the directed graph.