A fuzzy AHP approach for inbound supply risk assessment

Abstract

PurposeThe purpose of this paper is to provide a methodology for assessing supply risk for a product category. The fuzzy based analytic hierarchy process (Fuzzy AHP) has been used for the purpose. The technique is used to determine the supply related risk and its potential impact on the buyer organization.Design/methodology/approachThe research uses case analysis approach to understand the supply related risks and then applying fuzzy AHP for prioritization of the same.FindingsThe result of the case example indicates that the suggested approach of fuzzy AHP methodology seems feasible for risk assessment in supply chain management as it allows the personnel to express their judgments regarding the importance of each type of risk elements and evaluate the situation from their own perspective and then have this input coordinated in a quantitative fashion.Practical implicationsSupply chain managers can use this research as a base for developing risk assessment tool. The result can help as a benchmarking tool for the supply management professionals. By having a better understanding of which element has the greatest effect on risk, they can focus their attention on reducing the chance that risk can have on their organizations success and profitability.Originality/valueThis paper provides practitioners with a methodology for analyzing supply side risk as an objective of creating customer value by delivering perfect order.

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