Supply Chain Risk Management by Risk Efficiency Index

Abstract

Business competitive world is faced with various risk resources treated companies. There are many risk sources may occur in business supply chain network lead to huge loss of companies resources. Risk Identification, assessment and management is too crucial to protect the supply chain network revenue from inappropriate impact of potential risks. In this research a novel classification of identified risk in supply chain network is proposed which facilitate recognition of potential ventures in supply chain. Then, a neoteric Risk Efficiency Index (REI) presents based on hazards intensity versus resources spend to mitigate supply chain network risks. In a simple way risks are evaluated on loss criteria (outputs) and costs (inputs). REI attempts to determine which of the venture type is more destructive which is most critical to manage. According to fuzzy nature of risk, risk efficiency index is calculated Fuzzy area. First, the new approach in Fuzzy FMEA technique is applied to measure supply chain risks which show the superiority and efficiency of proposed model, then the Fuzzy AHP technique is implemented to rank risk potential resources.