scholarly journals Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP

Logistics ◽  
2021 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Marcus V. C. Fagundes ◽  
Bernd Hellingrath ◽  
Francisco G. M. Freires

Supplier risks have attracted significant attention in the supply chain risk management literature. In this article, we propose a new computational system based on the ‘Fuzzy Extended Analytic Hierarchy Process (FEAHP)’ method for supplier selection while considering the relevant risks. We sought to evaluate the opportunities and limitations of using the FEAHP method in supplier selection and analyzed the support of the system developed through the real case of a Brazilian oil and natural gas company. The computational approach based on FEAHP automates supplier selection by determining a hierarchy of criteria, sub-criteria, and alternatives. First, the criteria and sub-criteria specific to the selection problem were identified by the experts taking the relevant literature as a starting point. Next, the experts performed a pair-wise comparison of the predefined requirements using a linguistic scale. This evaluation was then quantified by calculating the priority weights of criteria, sub-criteria, and alternatives. The best decision alternative is the one with the highest final score. Sensitivity analysis was performed to verify the results of the proposed model. The FEAHP computer approach automated the supplier selection process in a rational, flexible, and agile way, as perceived by the focal company. From this, we hypothesized that using this system can provide helpful insights in choosing the best suppliers in an environment of risk and uncertainty, thereby maximizing supply chain performance.

2015 ◽  
Vol 35 (02) ◽  
pp. 223
Author(s):  
Sarinah Sarinah ◽  
Taufik Djatna

production processes. It is critical in the sense that it can be employed to identify any potential risks before they be used to reduce the potential shortage of dried seaweed supply needed by PT XYZ using pemasok selection. This supply chain model. The best selected suppliers were determined through assessing different assigned weights to the criteria and sub-criteria constructed in a Analytic Hierarchy Process (AHP) tree. PT XYZ is an alkali treated cottoni (ATC) chips and SRC powder supplier network with low risk supply chain partnership.Keywords: Supplier selection, supply chain risk management, MFMEA, AHP ABSTRAK Strategi penanganan risiko kekurangan pasokan merupakan upaya untuk mengurangi terjadinya risiko kekurangan bahan baku rumput laut kering untuk kebutuhan industri rumput laut di PT XYZ dengan melakukan pemilih pemasok. Manajemen risiko rantai pasokan memainkan peran yang lebih penting daripada sebelumnya. Perusahaan harus fokus itu, naskah ini mengusulkan metode  risiko dari perspektif tiap risiko rantai pasokan dan memilih pemasok dengan menerapkan metode (AHP) untuk menentukan bobot masing-masing kriteria dan sub-kriteria untuk pemilihan pemasok PT XYZ adalah industri pengolahan rumput laut dalam bentuk alkali treated cottonii (ATC)-Chips dan SRC . Hasilnya menunjukkan bahwa perusahaan memdapatkan pemasok yang lebih efektif dan pada saat yang sama mendapatkan mitra rantai pasokan yang berisiko rendah.Kata kunci: Pemilihan pemasok, manajemen risiko rantai pasok, MFMEA, AHP      


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdelkader Daghfous ◽  
Abroon Qazi ◽  
M. Sajid Khan

PurposeThe literature on supply chain risk management (SCRM) has investigated a multitude of supply chain risks. This paper aims to make a case for the importance of managing the risk of knowledge loss in the supply chain management (SCM) function and incorporating knowledge loss as a critical risk within the SCRM process.Design/methodology/approachThis paper adopts a knowledge-based view of the SCRM process and attempts to bring to light insights based on a synthesis of the relevant literature. The authors conducted a systematic literature review of peer-reviewed articles published between 1998 and 2019. Further, a case study was conducted to illustrate the significance of the risk of knowledge loss in the SCM function in terms of how it operates and why it has such a significant impact on performance.FindingsKnowledge loss is a relatively neglected type of supply chain risk that can be added to the existing typologies. This paper argues that knowledge loss in the SCM function has the propensity to significantly impact the performance of the focal firm, exacerbate other types of supply chain risk and impede risk mitigation efforts. We put forth several strategies that supply chain managers can adopt to mitigate the risk of knowledge loss in their function.Research limitations/implicationsThis paper generates an exploratory opening that could pave the way for a systematic theory of knowledge loss as a supply chain risk and future empirical research. The study culminates in a number of important insights and initiatives for supply chain managers to recognize and manage the risk of knowledge loss.Originality/valueThis paper argues for the importance of incorporating the risk of knowledge loss in SCRM research and practice. It also provides an examination of some promising angles for future research in SCRM from a knowledge-based perspective.


2019 ◽  
Vol 12 (1) ◽  
pp. 154 ◽  
Author(s):  
Muhammad Junaid ◽  
Ye Xue ◽  
Muzzammil Wasim Syed ◽  
Ji Zu Li ◽  
Muhammad Ziaullah

Risk is inherent in all parts of life and brings consequences, but when it specifically emerges in supply chains, it is susceptible. Therefore, this study aims at identifying and assessing supply chain risks and developing criteria for managing these risks. Supply chain (SC) risks consist of complex, uncertain, and vague information, but risk assessment techniques in the literature have been unable to handle complexity, uncertainty, and vagueness. Therefore, this study presents a holistic approach to supply chain risk management. In this paper, neutrosophic (N) theory is merged with the analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) to deal with complexity, uncertainty, and vagueness. Then the proposed methodology is practically implemented through a case study on the automotive industry. SC resilience, SC agility, and SC robustness were selected as criteria for managing supply chain risks and analyzed using N-AHP. Furthermore, seventeen risks were identified and assessed by using N-TOPSIS. Results suggest supply chain resilience is the most important criterion for managing supply chain risks. Moreover, supplier delivery delays, supplier quality problems, supplier communication failures, and forecasting errors are the most vulnerable risks that occur in supply chains of the automotive industry in Pakistan.


2018 ◽  
Vol 25 (9) ◽  
pp. 3831-3857 ◽  
Author(s):  
Samira Salehi Heidari ◽  
Mohammad Khanbabaei ◽  
Majid Sabzehparvar

Purpose One of the most important issues in supply chain (SC) management is the identification and management of the risk involved in it. The purpose of this paper is to propose a comprehensive model of supply chain risk management (SCRM) in the product life cycle (PLC) and the operational process cycle (OPC). To decrease the risks in a fuzzy environment, the model considers the organizational performance factors (OPF) and the risk operational practices (ROP). Design/methodology/approach Fuzzy analytic hierarchy process is used to determine the weights of the relationships between the PLC, OPC and OPF in the hierarchical structure of the decision problem. In addition, the fuzzy technique for order preference by similarity to ideal solution is employed to recognize the priority of ROPs in dealing with the performance factors. The integrated framework is evaluated using the case study of an automotive company in Iran. Findings The results demonstrated that the proposed model can be used to formulate an appropriate method for prioritizing defined alternatives to decrease risk and improve the organizational performance in SCRM under fuzzy conditions. Research limitations/implications A major limitation of the study is that a few of the selected criteria for risk assessment are focused only on economic factors. Another limitation of the current study is related to the PLC, OPC and OPF being based on the work of Xia and Chen (2011). Practical implications The current study identified the more important stage in the PLC. More significant process in each stage of the PLC and weightier risk factors in each process of the OPC were determined. Some strategies for reducing risk in each stage of the PLC were presented. The best alternatives for reducing risks in SC were indicated. Originality/value It is worth mentioning that previous studies have not applied multiple criteria and alternatives to decrease the risks involved in the PLC and OPC parts of the SC under fuzzy conditions. However, it should be stated that some academics have used these techniques separately, in other specialized areas of the SC.


2021 ◽  
Vol 13 (11) ◽  
pp. 6049
Author(s):  
Gabriela Costa Dias ◽  
Ualison Rébula de Oliveira ◽  
Gilson Brito Alves Lima ◽  
Vicente Aprigliano Fernandes

Supply chain risk management (SCRM) is imperative to achieve business sustainability in the long-term perspective and also to increase companies’ competitiveness. ISO 31000—Risk Management explains in its latest versions the need for companies to integrate a risk management process into their business models. Complementary to this standard, ISO 31010 presents 31 risk tools to guide companies in this task. However, a question of practical application arises as to which tools should be used for each stage of the SCRM process. In view of the raised question, the main objective of this research is to select ISO 31010 tools that can be used in each of the stages (identify, analyze, and evaluate) of the risk management of the import and export process of an automotive industry located in Brazil. For this, the analytic hierarchy process (AHP method) was used in a case study to prioritize the tools to compose the SCRM. As practical implications, this study resulted in the suggestion of a structured risk management process, considering the assessment of key professionals of the department studied in the company.


2020 ◽  
Vol 27 (1) ◽  
Author(s):  
Gabriela Costa Dias ◽  
Cecilia Toledo Hernandez ◽  
Ualison Rébula de Oliveira

Abstract Supply chain risk management (SCRM) has a strong influence on the cooperation among partners and the performance of the entire production chain. A supply chain designed to minimize risks enables firms to establish a competitive position and provides long-term benefits to stakeholders. The SCRM system should be structured to manage both routine and extraordinary risks, such as natural disasters and major accidents. The risks should be managed both reactively, by monitoring changes in the chain, the needs of customers, technology and the strategies of suppliers and competitors, among others, to enable quick reaction to events; and proactively, to identify risks and implement actions to prevent them or minimize their impacts. The basic risk management process consists of identifying, evaluating, mitigating and controlling risks. The objective of this paper is to analyze how a carmaker identifies and manages the risk factors in its supply chain. To achieve this aim, we performed a qualitative, applied and exploratory field study of a Brazilian automaker. The data were collected by structured interviews, and the analytic hierarchy process was applied to rank the risk factors, resulting in a risk matrix that can be an instrument for making decisions by the company studied.


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