Abstract
Supply chains are complex networks that receive assiduous attention in the literature. Like any complex network, a supply chain is subject to a wide variety of risks that can result in significant economic losses and negative impacts in terms of image and prestige for companies. In circumstances of aggressive competition among companies, effective management of supply chain risks (SCRs) is crucial, and is currently a very active field of research. Failure Mode, Effects and Criticality Analysis (FMECA) has been recently extended to SCR identification and prioritization, aiming at reducing potential losses caused by lack of risk control. This article has a twofold objective. First, SCR assessment is investigated, and a comprehensive list of specific risks related to the automotive industry is compiled to extend the set of most commonly considered risks. Second, an alternative way of calculating the Risk Priority Number (RPN) is proposed within the FMECA framework by means of an integrated Multi-Criteria Decision-Making (MCDM) approach. We give a new calculation procedure by making use of the Analytic Hierarchy Process (AHP) to derive factors weights, and then the fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) to evaluate the new factor of “dependence” among the risks. The developed joint analysis constitutes a risk analysis support tool for criticality in systems engineering. The approach also deals with uncertainty and vagueness associated with input data through the use of fuzzy numbers. The results obtained from a relevant case study in the automotive industry showcase the effectiveness of this approach, which brings important value to those companies: When planning interventions of prevention/mitigation, primary importance should be given to (1) supply chain disruptions due to natural disasters; (2) manufacturing facilities, human resources, policies and breakdown processes; and (3) inefficient transport.
Highlights
Nowadays competition among enterprises is evolving from a classical mere production-oriented task towards a more complex concept involving supply chain (SC) management
As mentioned above, we suggest modifying the traditional calculation of the Risk Priority Number (RPN) by using weights wk to ponder the effect of these factors; these weights will be calculated by means of the Analytic Hierarchy Process (AHP) technique, concisely described in the following subsection
This paper deals with the topic of supply chain risk (SCR) assessment as a fundamental preliminary part of the entire supply chain management process
Summary
Nowadays competition among enterprises is evolving from a classical mere production-oriented task towards a more complex concept involving supply chain (SC) management. Risk Priority Number (RPN) used by traditional methodologies, such as Failure Modes, Effects and Criticality Analysis (FMECA), for estimating the criticality of the risks Such a novel calculation makes use of four factors (in contrast with the traditional three of severity, occurrence and detectability) to improve FMECA analyses in the SC field by means of an integrated Multi-Criteria. Decision-Making Trial and Evaluation Laboratory (DEMATEL) to numerically evaluate one of the new introduced factors, called “dependence”, characterizing each risk as a partial expression of severity We claim that such a hybrid MCDM-based approach is a useful risk assessment tool for criticality and risk analysis in systems engineering and, in particular, is suitable to tackle SCR management since it is capable of managing the uncertainty and vagueness affecting the input evaluations provided by the experts.
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