A study on risk management of supply chain in Free Trade Zone

Abstract

This article analyzes the risks of the free trade zone from the perspective of supply chain management. By analyzing the possible risks in the market, cooperation, technology, information, finance and system of supply chain management in the free trade zone, this article puts forward the concept of supply chain risk-return redundancy. Then, on the basis of the three-level supply chain model, this paper analyzes the supply chain risk and return redundancy under the complete information sharing and information decentralization decision-making. The research results show that under the condition of complete information sharing, the overall risk-return redundancy of the supply chain is greater than the risk-return redundancy under the condition of information decentralized decision-making. This shows that information sharing can fully improve the risk prevention capabilities of the supply chain.