In today’s VUCA – Volatile, Uncertain, Complex and Ambiguous environment, identifying and prioritizing risks critical to the entire supply chain of automotive manufacturing is imperative. Despite data availability, managers and decision-makers often face trouble while prioritizing risks under varying circumstances due to a lack of a structured approach. This research identifies risks faced by Indian automotive manufacturing industries through literature review and confirms after consulting industry experts. Further, this paper proposes an integrated approach of entropy weighted criteria and VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) for ranking identified critical risk factors in the Indian automotive manufacturing industries. Adverse impact severity of thirteen identified risks on five different criteria “economic aspects”, “factory operations”, “company reputation”, “scheduling” and “quality of the end product/process” and considered during formulation decision matrix. Inputs from seven experts of leading Indian automotive industries were obtained for the overall ranking process. Among identified risks, “Delay Risks”, “Management Risks”, and “Supplier Risks” are ranked as the top three risks faced by Indian automotive manufacturing industries. The structured multi-criteria decision making (MCDM) approach for risks prioritization will guide managers and decision-makers while chalking out risk mitigation plans.
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