Abstract

Risk is a basic term for any decision making framework which can be defined as a probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities. For having a wide range of risks, Ready Made Garments (RMG) sector faces different difficulties in accomplishing their missions and goals. This paper has identified different risks associated with internal supply chain of the RMG sector. To achieve the expected outcome from this study, a renowned apparel factory named TALISMAN (BD), a branch of FCI GROUP, has been visited. 58 risks in 11 different departments have been identified by discussing about the process with the experts and experienced personnel of those departments along with the previous historical data of that factory. Analytical Hierarchy Process (AHP) has been used to identify the most severe risk of each department. Some corrective actions have also been suggested to eliminate the most severe risks of all department to enhance the overall efficiency of the supply chain.

Highlights

  • The export oriented Ready Made garments (RMG) sector in Bangladesh has started its journey in the late 1970s and has become enriched in the recent few years

  • Chain of RMG based on taking the orders from buyer by merchandising department and merchandiser sends it to production department

  • The main objective of this study is to find out the most severe risk of each department and this objective has been accomplished by implementing Analytical Hierarchy process (AHP)

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Summary

Introduction

The export oriented Ready Made garments (RMG) sector in Bangladesh has started its journey in the late 1970s and has become enriched in the recent few years. Bangladesh earns more than 25 billion USD per year while ensuring 4.5 million employment opportunities. After finishing and packaging activities, merchandiser delivers it to the buyer [2,3]. It has provided the opportunity of employment to millions of unemployed, especially innumerable uneducated women of this country. It is making significant contribution in earning foreign currency by export and at the same time it improves the socioeconomic condition of this country

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