Prioritization of Supply Chain Risks in Automotive Industry

Document Type: Original Article

Authors

1 M.Sc., Department of Management, Firoozkuh Branch, Islamic Azad University, Firoozkuh, Iran

2 Associate Professor, Graduate School of Global Studies, Sophia University, Tokyo, Japan

Abstract

Supply chains are constantly exposed to various risks. An incident or uncertain event, which has positive or negative effect on the objectives of a project, is called a risk. According to this identification, analysis and prioritization of risks may have a significant role in the success of the project. The purpose of risk management is to reduce the risks of non-achievement of these objectives and to identify and benefit from opportunities. Accordingly, the objective of this study is to prioritize the performance of supply chain risks. For this purpose we have analyzed the supply chain of a large automotive parts' supplier based on the method of fuzzy analytic network process and taking into account the opinion of specialists and experts. Fields of study for the prioritization of the supply chain risks, consist of five main components: supplier risk, manufacturer risk, distributor risk, external risk and final customer risks. In order to prioritize these fields, questionnaires were prepared and codified based on experts' opinions. Afterwards, the compiled data were analyzed and investigated in Super Decision Software. The research results indicate that among the main components, external risks have the first priority and final customer risks have the second priority. Among the sub-components, the inappropriate price sub-component has the highest rank while the supplier bankruptcy sub-component has the last priority.

Keywords