Integrated Risk Management with Capacity Reshoring

Abstract

In this chapter, we provide an analytical model of integrated risk management with capacity reshoring. First, we review the analytical models on integrated operations-finance risk management in global manufacturing. Second, we formulate a global supply chain model and propose an optimal integration of operational flexibility and financial hedging. Third, we study analytically and numerically the interactions between operations and finance. Furthermore, the main insights and suggested directions for future research are summarized.