Supply Chain Risk Prioritization Using a Hybrid MCDM Approach

In recent years, supply chains have become increasingly vulnerable to risks resulting in poor financial performance and customer service. Managing the supply chain risks is a challenging task. Resilience and responsiveness based strategies are being attempted to build a robust supply chain. To select the appropriate mitigation strategies, supply chain risks are to be prioritized. Supply chain risk prioritization is a Multi Criteria Decision Making (MCDM) problem. MCDM models for supply chain risk prioritization needs attention. In this research, a hybrid Analytic Hierarch Process (AHP) and Preference Ranking Organization METHod for Enrichment Evaluation (PROMETHEE) approach is proposed for supply chain risk prioritization. A case example of a typical tractor industry is presented to illustrate the performance of the proposed approach.