Development of a supply chain risk index for manufacturing supply chains

Aswin Alora · Mukesh Kumar Barua

35 citations0/0 files storedInternational Journal of Productivity and Performance Management

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Supply Chain Resilience and Risk Management Multi-Criteria Decision Making Quality and Supply Management

Abstract

Purpose The 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/approach Primary 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. Findings Results 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/implications Study is limited to the scope of an emerging market. Generalization of results needs more systematic studies around the world in different supply chains. Practical implications Supply 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/value The 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.

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References

1990How to make a decision: The analytic hierarchy process 1981Methods for Multiple Attribute Decision Making 2004Analytic hierarchy process: An overview of applications 2006Perspectives in supply chain risk management 2004Managing Risk To Avoid Supply-Chain Breakdown 2007The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities 2003Supply chain risk management: outlining an agenda for future research 1998An assessment of survey research in POM: from constructs to theory

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