Combination of the Analytic Network Process Method and Multi-Objective Decision-Making in order to Predict and Reduce the Future Risks of Suppliers

Abstract

The essential risks of suppliers increase complexity and vulnerability of supply chain and sometimes cause the disruptions. These risks should be predicted and to coping with them some solutions must be provided beforehand. It is aimed at identifying the disruptive risks in the supply chain of Foolad steel and then decreasing their potential effects for the next four periods. According to experts of the company, the graphite electrode is strategically the most important material as its risks disrupt the supply chain. The weighs of these risks were determined by using ANP and accordingly the most important risk was the risk of non-flexibility of suppliers with a weight of 0.5436. Other risks, the risk of long delivery orders, the risk of low quality and the risk of price increases, have the weights of 0.1911,0.1716 and 0.0937, respectively. Then, a multi-objective function model was developed that each objective function aims to minimize one risk. This model was solved by two methods, absolute priority method and goal programming, and finally the results were compared to each other.

Keywords

• multi suppliers model
• resilient supply chain
• analytic network process
• absolute priority method
• goal programming