A fuzzy dynamic inoperability input-output model for strategic risk management in global production networks

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Title: A fuzzy dynamic inoperability input-output model for strategic risk management in global production networks
Authors: Niknejad, A
Petrovic, D
Item Type: Journal Article
Abstract: Strategic decision making in Global Production Networks (GPNs) is quite challenging, especially due to the unavailability of precise quantitative knowledge, variety of relevant risk factors that need to be considered and the interdependencies that can exist between multiple partners across the globe. In this paper, a risk evaluation method for GPNs based on a novel Fuzzy Dynamic Inoperability Input Output Model (Fuzzy DIIM) is proposed. A fuzzy multi-criteria approach is developed to determine interdependencies between nodes in a GPN using experts’ knowledge. An efficient and accurate method based on fuzzy interval calculus in the Fuzzy DIIM is proposed. The risk evaluation method takes into account various risk scenarios relevant to the GPN and likelihoods of their occurrences. A case of beverage production from food industry is used to showcase the application of the proposed risk evaluation method. It is demonstrated how it can be used for GPN strategic decision making. The impact of risk on inoperability of alternative GPN configurations considering different risk scenarios is analysed.
Issue Date: 21-May-2016
Date of Acceptance: 20-May-2016
ISSN: 0925-5273
Publisher: Elsevier
Start Page: 44
End Page: 58
Journal / Book Title: International Journal of Production Economics
Volume: 179
Copyright Statement: © 2016, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International
Keywords: Science & Technology
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
Risk management
Inoperability Input Output Models
Global Production Networks
Supply Chain Management Risk
Fuzzy arithmetic
Dynamic models
MD Multidisciplinary
Operations Research
Publication Status: Published
Appears in Collections:Faculty of Engineering
Civil and Environmental Engineering

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