Supply side risk assessment: an application of Yager's methodology based on fuzzy sets

Abstract

This paper discusses the potential application of fuzzy set theory in the area of supply side risk assessment using linguistic variables/values. The application has been illustrated through its use in a process industry. Yager's methodology for ordinal multi-objective decisions based on fuzzy sets has been chosen since the model only demands ordinal information of expert's preferences and the importance of each individual factor. It allows supply chain risk evaluation, ranking and prioritisation based on expert's knowledge, experiences and opinions. Moreover, this model can be used by the practicing managers who may not be having in-depth knowledge on fuzzy mathematics. Typical supply related risks in a process industry have been used in this application.