Applying Integrated QFD-MCDM Approach to Strengthen Supply Chain Agility for Mitigating Sustainable Risks

Chih-Hung Hsu,Ru-Yue Yu,An-Ching Sun,Wan-Ling Liu,An-Yuan Chang

doi:10.3390/math10040552

Chih-Hung Hsu, Ru-Yue Yu + Show 3 more

Open Access

https://doi.org/10.3390/math10040552

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Abstract

As the global economy develops and the complexity of supply chains increases, the effective mitigation of sustainable supply chain risks in electronics manufacturing has become important. While quality function deployment (QFD) has been successfully applied to many fields of multicriteria decision-making (MCDM), there is a lack of research on constructing a house-of-quality model that can be combined with MCDM for connecting supply chain agility with sustainable supply chain risks, especially in the field of electronics manufacturing. The objective of this study was to develop an integrated framework of QFD and MCDM and to devise an effective method to mitigate sustainable supply chain risks by improving supply chain agility. Such a method can help the multinational electronics manufacturing industry to develop stable and sustainable supply chains. In a multinational electronic manufacturing enterprise as an example, the results showed that the case enterprise work should focus on improving agility ‘production and sales capability’, ‘quick decision-making/strategic flexibility’, ‘electronic shiapment of finished products to control shipment operations’, ‘supplier on-time delivery rates’ and ‘cost minimization’. Improving agility would help enhance the ‘credibility and competence of operators and leaders’ and ‘product safety and quality’ and reduce ‘goods disruption or delay due to inadequate supply mobility and poor financial performance’, ‘information system instability’, the ‘long product lead time’ and other key sustainable supply chain risks. The proposed framework can not only be effectively used by other electronics manufacturers to develop agile strategies to mitigate sustainable supply chain risks, but also provides a reference for risk management for manufacturers in other fields.

Highlights

With increasingly fierce market competition and increasingly stringent environmental regulations, electronic enterprises need to effectively integrate environmental protection and social responsibility into their daily operations and supply chain operation management
This study examined whether reducing sustainable supply chain risks (SSCRs) by improving supply chain agility (SCA) improved the sustainability of an electronic manufacturing supply chains (EMSCs)
A quality function deployment (QFD)-multicriteria decision-making (MCDM) integrated framework was used to determine the relationship between the identified SSCRs and between SSCRs and agility criteria, apart from being used to ascertain the importance of SSCRs and agility criteria

Summary

Introduction

With increasingly fierce market competition and increasingly stringent environmental regulations, electronic enterprises need to effectively integrate environmental protection and social responsibility into their daily operations and supply chain operation management. Establishing an efficient and effective electronics manufacturing supply chain is important for both emerging and developed economies [2]. Electronic manufacturing supply chains (EMSCs) have been challenged by many factors, including price fluctuations, climate change, information security and customer needs [3]. With the development of globalization, supply chain systems have become longer and more complex. Vulnerabilities and related supply chain risks increase with the complexity of the supply network [4], resulting in enterprises facing higher levels of risk [5]

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