A system dynamics simulation model of chemical supply chain transportation risk management systems

• Review chemical supply chain transportation risk management theory and application.
• Propose a system dynamics based method to identify, assess and mitigate risks.
• Explore the complex interactions and dynamic feedback effects among the system.
• Assess and benchmark the effects of various risks through conducting simulation.
• Provide a transparent decision support tool to risk management.

Unforeseen events can interrupt the operational process and have a negative impact on the chemical supply chain transportation (CSCT) system. A number of research studies have addressed the risk management issues in chemical supply chain (CSC) or CSCT. However, most of the existing methodologies lack inbuilt and practical techniques that take into consideration the complex interactions and dynamic feedback effects, which can significantly affect the reliability of risk management outcomes. This paper suggests a novel modelling and simulation method to address the dynamic risks effects in the CSCT, especially the consideration of time-dependent system behaviour in different operational conditions. Furthermore, the flexibility of the model modification is adapted to enhance the practice in risk mitigation. A transparent decision support tool is provided to compare the outcomes of different risk mitigation processes, which offers decision makers an alternative CSCRM mitigation package.