Decision-making models for supply chain risk mitigation: A review

Abstract

Abstract This paper presents a systematic literature review and a comprehensive analysis of the decision-making models for supply chain risk (SCR) mitigation. In all, 538 research articles published from 2005 to 2016 in the Academic Journal Guide quality rated journals have been collected and a further 126 articles were shortlisted for the final review. The objectives of the review are to (i) identify the major research concepts in SCR mitigation (ii) identify SCRs, mitigation strategies, and the decision-making models most addressed by scholars working on SCR mitigation, (iii) study the relationship between the mitigation strategies and the modelling techniques used, and (iv) study the relationship between the risk measures, decision maker’s risk attitude, and the modelling techniques used. An integrated research focus parallelship network and keyword co-occurrence network analysis has been carried out using BibExcel and Gephi to identify the major areas in SCR mitigation. Our results suggest that disruption, demand, and supply risks have received much attention while reputation, credit, exchange rate and information risks are least addressed. Robust/resilient supply chain network design and risk propagation analysis, sourcing/supplier selection and order allocation, reliable facility location/fortification and inventory management, and co-ordination, pricing and risk sharing contracts are the major research concepts in SCR mitigation. Stochastic programming and mixed integer linear programming are the commonly studied modelling methods.