Development of a supply chain risk index for manufacturing supply chains

Abstract

PurposeThe purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a comprehensive supply chain risk index.Design/methodology/approachPrimary data has been collected from 354 Indian micro small and medium enterprises on the different supply chain risks faced by them. An extensive literature review followed by expert's interview has been carried out in order to finalize the supply chain risks. A hybrid methodology consists of AHP and Fuzzy TOPSIS is applied for the data analysis. A sensitivity analysis has been done to check the robustness and consistency of the results.FindingsResults depict the importance of supply side and financial side risks faced by manufacturing supply chains, thus adding to the ongoing academic debate on the importance of supply chain finance solutions.Research limitations/implicationsStudy is limited to the scope of an emerging market. Generalization of results needs more systematic studies around the world in different supply chains.Practical implicationsSupply chain managers can consider the benchmark framed in this study in order to identify the health of their supply chain and to efficiently employ supply chain risk management strategies.Originality/valueThe current study is novel in developing a supply chain risk index using a hybrid AHP-Fuzzy TOPSIS methodology with a comprehensive list of 26 supply chain risks under 5 categories for an MSME supply chain. To the best of the authors’ knowledge, this is the first study incorporating financial risks in the development of a supply chain risk index.

Risk management methodology in the supply chain: a case study applied

“…There are studies that used the integrated approach consisting of AHP to solve multi-criteria decision-making problems (MCDM) with criteria weights (Sarkar & Biswas, 2021) for risk treatment. Este documento tiene como objetivo identificar, clasificar y priorizar los riesgos de la cadena de suministro que enfrentan las pequeñas y medianas empresas de fabricación de pan y derivados para desarrollar una metodología de gestión de riesgos de la cadena de suministro (Alora & Barua, 2020). With this study we intend a triple objective: Risk detection, risk mitigation, and risk recovery, Reduce risk management in supply chains to a single procedure through the study and collection of numerous methods and documents related to the subject (DuHadway et al, 2019) Apply this procedure to a practical case in a current supply chain, measuring the results and assessing them for possible measures that can reduce the probability of occurrence of each one or reduce or mitigation its impact on the chain.…”

Supply chain sustainability risk decision support model using integrated Preference Selection Index (PSI) method and prospect theory

“…(2015) and Muhfirodin et al. (2015) and its integration with pairwise-based risk reprioritization criteria based on the AHP and TOPSIS are reported by Alora and Barua (2022). Considering the influence of the weight of risk reprioritization criteria, Slamet et al.…”

“…In the first category, scholars reported the use of conventional Failure Mode and Effect Analysis (FMEA) for ranking supply chain risk is exemplified by the works ofAnin et al (2015),Wahyuni et al (2018),Nurmianto et al (2019),Rivas et al (2019) andSanny et al (2021). In the second category, to deal with the fuzziness of risk reprioritization criteria, fuzzy logic stand-alone-based risk reprioritization ranking approaches are presented byRohmah et al (2015) andMuhfirodin et al (2015) and its integration with pairwise-based risk reprioritization criteria based on the AHP and TOPSIS are reported byAlora and Barua (2022). Considering the influence of the weight of risk reprioritization criteria,Slamet et al (2017),Raihan et al (2019) andOrzaez and…”

Supply chain risk mitigation strategies during COVID-19: exploratory cases of “make-to-order” handloom saree apparel industries

“…These disruptive events disturb the organizations' ability to continuously manage operations and production (Paul and Chowdhury, 2020). Alora and Barua (2020) argue the essentiality of identification and evaluation of critical SCRs for mitigating Supply chain risk mitigation during COVID-19 disruptions in the supply chain efficiently. Thus, it becomes necessary to identify the relevant SCRs that emerged during the current epidemic conditions in the Indian handloom saree industry and assess the most suitable RMSs to overcome the risk impact.…”