Using incentive schemes to alleviate supply chain risks

This paper describes a methodology and toolkit for the analysis of risks due to insiders' dysfunctional behavior in supply chains. It shows how risk analysis techniques based on value models [15] can incorporate the design and distribution of incentives as a risk-alleviation technique. Some important new functionalities of our SCRS (Supply Chain Risk Simulator v1 [14]) tool are presented. Such functionalities allow for (i) import/export of value models and (ii) execution of incentive-aware risk analysis. Functionality (i) fully integrates the SCRS tool with the e3-value tool suite, increasing synergy with existing value model toolkits. Functionality (ii) substantially extends the original palette of techniques for risk analysis and alleviation. Finally, the paper presents the results of an extensive experimentation of our methodology and simulation tool taking into account different combinations of incentive schemes and simulation options.