The best way to conference proceedings by Francis Academic Press

Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Research on the Construction of Internal Control of Supply Chain in Retail Industry Based on Risk Management Model

Download as PDF

DOI: 10.25236/ichess.2023.027


Lei Zheng, Senyu Xu

Corresponding Author

Senyu Xu


This paper proposes an internal control system for commercial retail enterprises based on risk management. Based on the mean-preserving transformation and mean-CVaR criterion in probability theory, the author first studies the impact of demand variability reduction and risk preference on the supply chain system. This paper then builds a centralized system of supply chains and demonstrates that promotional efforts and reduced demand variability can increase the profitability of centralized systems. Finally, this paper establishes a decentralized supply chain system under the risk preference of retailers. System simulations demonstrate that a combined contract of revenue sharing and quantity discount can coordinate a supply chain where demand depends on promotional efforts and levels of variability.


Risk Management, Retail, Supply Chain, Internal Control, Internal Control Risk System