Modeling Impacts of COVID-19 in Supply Chain Activities: A Grey-DEMATEL Approach

Abstract

The purpose of this study was to identify and exhibit the interrelationships among COVID-19’s impacts on supply chain activities. Based on a literature review and the manager’s input, twenty COVID-19 impacts were collected. An integrated approach of exploratory factor analysis (EFA) and grey-decision-making trial and evaluation laboratory (G-DEMATEL) was used to reveal the causal interrelationships among the COVID-19 impacts. Initially, a questionnaire survey was administered among 220 respondents for EFA. Based on the outcome of EFA, the twenty COVID-19 impacts were categorized into seven critical areas. Then, based on the experts’ inputs, G-DEMATEL was utilized to reveal the causal interrelationships among various COVID-19 impacts. The results indicate that disruption management, relationship management, and production management are the top three critical areas that need to be addressed in the COVID-19 crisis. Disruption in supply, ripple effect on supply chain operations, and obsolescence of machines were found to be the most influential impacts while disproportionateness between supply and demand, difficulty in demand forecasting, and reduced cash inflow were found to be the most influenced impacts. This study’s outcomes will help policymakers and supply chain managers develop strategies to restructure supply chain networks. This study is an original contribution to the analysis of COVID-19 impacts in the supply chain activities in India due to the use of EFA and G-DEMATEL. This study considers India only, and hence, the outcomes lack generalizability. A study considering multiple developing countries could generalize these findings.