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A decision support model for mitigating supply chain risks based on a modified fmea, multi-objective optimization and multi-criteria decision-making approach

Kayouh Nabil, Dkhissi Btissam

Management Systems in Production Engineering

2024

nr 1 (32)

87--102

Recent years have seen a huge development in the subject of supply chain risk management. In this increasingly uncertain world, the use of practical and effective tools for decision making and risk mitigation has become more necessary than ever. In this research, mitigation strategies for a tier one multinational company operating in the automotive industry and providing an assembly operation to final customer Renault Tanger and Renault SOMACA were prioritized according to their effectiveness, as well as their implementation costs. Based on research in the literature and the opinions of experts in the field. 44 risks and 55 mitigation strategies were identified. FMEA (Failure Modes and Effects Analysis) method was used based on the latest AIAG 2019 edition to filter and identify the risks to be prioritized, we used then a multi-objective optimization approach to identify the mitigation strate-gies that constitute the Pareto front for each of the risks and finally used the EDAS method for the final ranking of the strategies. Our case revealed that strategies like ensuring elaborating a contingency planning and defining the responsibilities, imposing contractual obligations on subcontractors, applying a flexible supply contract were found to be relevant risk mitigation strategies for the company. Managers interested in mitigating risk can deploy this model to prioritize risk mitigation strategies.