Heterogeneous Risk Management Using a Multi-Agent Framework for Supply Chain Disruption Response

Mingjie Bi, Juan-Alberto Estrada-Garcia, Dawn M. Tilbury, Siqian Shen, Kira Barton

Abstract: In the highly complex and stochastic global, supply chain environments, local enterprise agents seek distributed and dynamic strategies for agile responses to disruptions. Existing literature explores both centralized and distributed approaches, while most work neglects temporal dynamics and the heterogeneity of the risk management of individual agents. To address this gap, this letter presents a heterogeneous risk management mechanism to incorporate uncertainties and risk attitudes into agent communication and decision-making strategy. Hence, this approach empowers enterprises to handle disruptions in stochastic environments in a distributed way, and in particular in the context of multi-agent control and management. Through a simulated case study, we showcase the feasibility and effectiveness of the proposed approach under stochastic settings and how the decision of disruption responses changes when agents hold various risk attitudes.