Supply chain risk assessment in the refrigerator industry of Bangladesh: a case study

Abstract

Risk exists in various fields of research like finance, manufacturing, healthcare, supply chain management, etc. However, insufficient understanding of uncertain regional differences and various industry trends, have increased firm exposure to supply chain risks. In today’s scenario, organizations are becoming more vulnerable in their supply chain due to irregularities of material supply, product demand, skills, and equipment requirements. Supply chain risks consist of complex, uncertain, and vague information, but risk assessment techniques have been unable to handle complexity, and vagueness. Therefore, managing of risk has become important to tackle such kinds of disturbances from a supply chain context. As refrigerator manufacturing industry is emerging sector in Bangladesh so supply chain in this sector is yet to be stabilized, so there are lots of unseen risks come up which is pretty difficult to predict. Even in regulatory level several functions are yet to be defined. Supply Chain Risk Management (SCRM) have enormous effects on the firm’s performance. Therefore,it is necessary to develop strategies appropriate for coping with risks and maintaining the firm’s performance level In this thesis the risks were identified through a combination of literature review and expert opinions from manufacturing field as well as academic field. Research methodology is developed using Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and then Analytical Hierarchy Process (AHP), popular method for multiple criteria decision making (MCDM). Then the proposed methodology is practically implemented through a case study on refrigerator manufacturing industry. Severity and probability is selected as a decision making criteria for TOPSIS. Moreover 6 major risk and 24 sub risk under major risks were ranked using TOPSIS and AHP and rank differences were identified. Results suggests supply related problems are major risk factor in refrigerator industry. This research work can assist practitioners and industrial managers in the refrigerator manufacturing industry in taking proactive action to minimize its supply chainrisks. To the end, a sensitivity analysis test, which gives an understanding of the stability of ranking of risks.