Risk Mitigation Strategies in Supply Chain, Using 1-P Analysis and MADM A Case Study: Alloy Steel Industry

Abstract

In the last few years, supply chain management has become more important, because of the globalization of business. Factors such as short product life cycle, new technologies and product development have led to increase complexity in supply chain. By increasing complexity, level of uncertainty and risk in the chain goes up. Hence supply chain risk management has become a major issue in the organization. One of the risks existing in the supply chain is risk of suppliers. In this study, Supply Chain Risk from this perspective will be investigated. For this purpose, factors affecting on the risks incurred by the supplier on Alloy Steel industry were evaluated and ranked using VIKOR technique. After ranking these factors, in order to identify factors that need to be improved and those that the organization must perform necessary deeds about them, importance-performance analysis is used. Using this technique, the most important risk factors that need to be improved are identified and more appropriate strategies are offered.

Keywords

• supply chain risk
• vlse kriterijumsa optimizacija i kompromisno resenje (vikor)
• importance-performance analysis (ipa)
• risk mitigation strategies in supply chain
• steel industry