Journal of Management Information and Decision Sciences (Print ISSN: 1524-7252; Online ISSN: 1532-5806)

Abstract

Supply Chain Risk Management Process with AHP

Author(s): Yun Wan

Supply chain risk has always been a hot issue. How should enterprises deal with the risk of chain break such as COVID-19 in 2020? In this paper, the application of AHP is embedded in the traditional supply chain risk management process to find a new idea of risk management for a single enterprise. First step is risk identifying with “Third party causes breakdown” “Software gives over-forecast”, “Third party causes delay”, “Strategic transfer causes disqualification”, etc. “Third party causes breakdown” with the highest score identified as the most emergent risk factor. Second step is risk mapping clarify the level of different supply chain partners, which leads to different risk management decision. Third step is risk evaluation by AHP with 6 risk factors and 3 program under the goal of risk minimization, since CR is less than the allowed CR of 0.1 and hence the value is acceptable. P1 program which means changing partner is the best decision. In epidemic situation AHP help enterprises quickly respond to market changes and make correct decisions.

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