Evaluation of supply chain risks by fuzzy DEMATEL method: a case study of iron and steel industry in Turkey

Abstract

Business practices to strengthen competitiveness increase the vulnerability of supply chains to risks. Risks that can adversely affect the effectiveness and efficiency of supply chain activities are events that disrupt the flow of information, materials, money, and products. Therefore, supply chain risk management is vital for companies. It is necessary to identify the risks that threaten the supply chain and prioritize them. In addition, examining the effects of risks on each other will determine the success of supply chain risk management. This study evaluates Turkey’s leading iron and steel company’s supply chain risk groups and sub-risks. The fuzzy DEMATEL method was used to determine the relative importance of the risks and the effects of the risks on each other. Results show that the most critical risk group is business risks. Business risk is followed by customer risks, supplier risks, transportation risks, environmental risks, and, finally, security risks. This study provides originality by evaluating the supply chain risks from a broader perspective.

Keywords

• fuzzy dematel
• iron and steel industry
• supply chain risk management
• risk assessment