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2021, Expert systems with Applications
The purpose of this paper is to develop a framework to identify, analyze, and to assess supply chain disruption factors and drivers. Based on an empirical analysis, four disruption factor categories including natural, human-made, system accidents, and financials with a total of sixteen disruption drivers are identified and examined in a real-world industrial setting. This research utilizes an integrated approach comprising both the Delphi method and the fuzzy analytic hierarchy process (FAHP). To test this integrated method, one of the well-known examples in industrial contexts of developing countries, the ready-made garment industry in Bangladesh is considered. To evaluate this industrial example, a sensitivity analysis is conducted to ensure the robustness and viability of the framework in practical settings. This study not only expands the literature scope of supply chain disruption risk assessment but through its application in any context or industry will reduce the impact of such disruptions and enhance the overall supply chain resilience. Consequently, these enhanced capabilities arm managers the ability to formulate relevant mitigation strategies that are robust and computationally efficient. These strategies will allow managers to take calculated decisions proactively. Finally, the results reveal that political and regulatory instability, cyclones, labor strikes, flooding, heavy rain, and factory fires are the top six disruption drivers causing disruptions to the ready-made garment industry in Bangladesh.
Journal of Engineering Studies and Research
Managing Supply Chain Risks: A Fuzzy-Failure Mode and Evaluation Approach for Ranking Threats2021 •
On the backdrop of lower transportation cost, outsourcing paved the way for borderless production activities and ushered in the era of Supply Chain Management (SCM). For many organizations, achieving the goals of their Supply Chain (SC) is constantly threatened by increased competition and disruption. In this study, the aim is to identify, and rank, SC threats in a developing country using Failure Mode and Effects Analysis (FMEA) with Fuzzy Logic (FL). FMEA parameters were derived for 44 supply chain threats (SCT1 – SCT44) and their Risk Priority Number (RPN) determined. Subsequently, the Mamdani Fuzzy Inference system was utilized to arrive at a Fuzzy-RPN with 125 rules using severity as a determining factor. The rules were ranked to prioritize SC threats. From the conventional FMEA, demand variation (SCT42) and long-distance sourcing (SCT27) had the highest and lowest RPN, respectively. After fuzzification and defuzzification, Fuzzy-RPN identified raw material delay (SCT1), govern...
In the competitive business environment, there exist high levels of interactions between components/agents of a supply chain. However, these interactions are further amplified by uncertain events caused by natural and man-made actions. The two common modes of disruptions are supply and demand disruption in practice. The supply chain of an enterprise is highly sensitive to supply and demand disruption. In this work, we thus integrate supply and demand disruptions and a mathematical optimization approach is proposed to formulate a scenario-based supply chain disruptions management framework. The model presented in this paper makes an attempt to determine the ordering portfolio to the selected set of suppliers in a pre-disruption and post-disruption situation using a scenario-based approach. However, the model tries to capture quality performance of the suppliers, along with delivery performance of the outside suppliers an enterprise asks for as a whole. We minimize the sum of purchasing cost from local supplier and the expected cost in the event of disruptions. The demand and the fraction of order supplied by the outside suppliers are assumed to be normal probability distribution with mean value and associated standard deviation. In a disruption scenario, the discrete values of demand and order fraction are taken from random number generation. GAMS-CPLEX 24.1.3 software is used to solve the model. The proposed model could provide an effective tool to actively react to disruptions that could happen in the supply chain of an enterprise. The application of the proposed framework is illustrated through a hypothetical case study.
2018 •
Enterprises affected by supply chain disruptions have reported adverse consequences and dramatic financial losses. Within the research area of supply chain risk management, researchers use simulation models and algorithms to analyze disruption risks and their potential effects on the supply chain. Supply chain disruption risk models focus on ways to quantify and assess disruption risks, study interdependencies between them, and explore the dynamic behavior of risks as they propagate through the network. So far, no review has covered and evaluated quantitative decision models which focus on these specific network-related risk characteristics. This paper derives a definition for supply chain disruption risk models and analyzes existing approaches on the basis of requirements derived from the literature. Its aims are to structure existing approaches, reveal their shortcomings, and guide future research efforts to improve prospective models systematically. This analysis reveals potentia...
With the upsurge of frequent disruptive events, organizations have become more vulnerable to the consequences of these disruptive events. As a result, the need for more resilient supply chain (SC) to mitigate the vulnerabilities has become paramount. Supply chain resilience (SCR) has been discussed in the literature and resilience index has been developed, but developing and selecting a portfolio of supply chain resilience capabilities in order to mitigate the vulnerabilities have not been studied. In this research we develop a 0-1 multi-objective optimization model based on QFD methodology. Our multi-objective method is interactive and interacts with the decision makers to choose the most satisfactory efficient portfolio of supply chain resilience strategies. We apply our methodology to three large ready-made garment (RMG) companies of Bangladesh. Results show that lack of materials (high dependence on imported materials), disruptions in utility supply, increased competition (and hence competitive pressure), impact of economic recession, and reputation loss are the top most vulnerabilities of Bangladesh RMG industry. The most preferred resilience strategies to mitigate the vulnerabilities are: backup capacity, building relation with buyers and suppliers, quality control, skill and efficiency development, ICT adoption, demand forecasting, responsiveness to customers, and security system improvement. Theoretical and managerial implications of our study are included. Introduction Ready Made Garment (RMG) industry contributes hugely to Bangladesh's economy. It creates more than four million direct employment and several millions of indirect employment and accounts for 78.6 percent of countries export earnings [5]. RMG sector also immensely contributes in reducing the high rate of women unemployment in the country as 80 percent of the garments workers are women [5]. Thanks to the RMG sector, Bangladesh is also the second largest apparel exporter in the world. Despite its huge potentials the industry is struggling with numerous Supply Chain (SC) disruptions [49,42]. The consequences of the disruptions are huge, for example, RMG industry of Bangladesh loses $26.15 million per day due to problems in SC functions caused by political instability [1]. Moreover, the preferential access in U.S. market is cancelled because of the poor safety standard in production plants as building collapse in garment factory caused the death of more than eleven hundred workers [37]. These disruptions have chain effect to all the members in SC network including the international buyers (retail chains) and suppliers. In the wake of such a critical state in RMG supply chain, developing resilience capabilities is vital, which is the primary objective of this study. Resilience has been defined by a number of authors in a related manner. Vugrin et al. [99] define system resilience and resilience in general. The authors highlight that resilience is the ability of a systems to respond to a 'disruption' due to an event or set of events. Along the same vein Christopher and Peck [24], Ponomarov and Holcomb [81] and Jüttner and Maklan [53] define supply chain resilience as the 'capability of the supply chain to responds to disruptions and recover from them'. On the other hand Pettit et al. [79,80] developed a supply chain resilience framework by identifying seven categories of vulner-abilities and creating supply chain capabilities along 14 areas (sour-cing, order fulfilment, capacity development; among others). The authors surmise that current level of vulnerabilities and capabilities must be assessed in order to ascertain the current level of resilience. Literature emphasizes that developing resilience capability is vital for organizations. It enables organizations to improve system performance [80,99], achieve sustainable competitive advantage [81], gain market share in competitive environments [90], and decreases vulnerabilities [53,79,80]. However current literature lacks in Contents lists available at ScienceDirect
Supply chain risk management is a crucial part of any strategy across all sorts of industries. The apparel industry in Bangladesh have a great contribution on its total GDP (gross domestic product). Due to the sophisticated nature of the industry, a number of risks have been associated to its supply chain. These risks and their sources disturb the apparel supply chain to function optimally and decline its overall performance. Therefore, identifying the critical risks of apparel supply chain and its prioritization is very important. The present research aims at identifying and prioritizing the risks relevant to apparel supply chain. The major risks were identified based on the literature review and responses from the industrial experts. The fuzzy analytic hierarchy process (fuzzy AHP) was employed to analyze the risks and determine their ranking. In this work, the results indicate that supply risk is the most critical one followed by operational risk and demand risk. The least importance is given to the environmental risk. A sensitivity analysis is also conducted to examine the stability of the priority ranking made and the results show that the rankings remain unchanged due to any variations of the normalized weight for a particular criterion.
Autex Research Journal
Modeling Supply Chain Sustainability-Related Risks and Vulnerability: Insights from the Textile Sector of Pakistan2021 •
Sustainability-related risk and vulnerability management have attained significant attention from academia and industry. Manufacturing industries in developing countries such as Pakistan are under severe economic pressure and striving to boost sustainable supply chain practices for achieving business excellence. In this context, the objectives of the present research are to examine the critical supply chain risks associated with sustainable development goals, namely social, economic, and environmental factors. The failure mode and effect analysis (FMEA) technique is employed for categorizing the risk factors and Pareto analysis for highlighting the more crucial and risky factors. For this purpose, a large-scale survey was carried out in the textile industries of Pakistan to develop a risk mitigation model for sustainability-related risks and vulnerability in a textile supply chain (TSC). It captures the input expressions of experts for risk factors, namely severity (s), occurrence (...
Sustainability
Unveiling Supply Chain Nervousness: A Strategic Framework for Disruption Management under Fuzzy EnvironmentSupply chains are increasingly vulnerable to disruptions due to the complex and interconnected nature of global business operations. Supply chain nervousness (SCN) leads to inefficiencies and disruptions in the flow of goods and services. Managing SCN is critical for sustaining the continuity of business operations in today’s dynamic and uncertain business environment. To address this issue, this study proposes a strategic framework that integrates key components of supply chain nervousness management and establishes a robust framework that prioritizes these factors based on their relative importance. By incorporating the fuzzy-ELECTRE methodology into the analysis, the proposed framework acknowledges the inherent uncertainties and imprecisions present in supply chain disruptions. It offers a systematic and comprehensive approach to prioritizing and managing SCN factors, considering both qualitative and quantitative assessments. To validate the effectiveness of the proposed framewor...
Operations Management Research
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