System Engineering and Productivity

System Engineering and Productivity

Risk Assessment in Sustainable Supply Chain with Failure Analysis Approach and its Effects in Intuitive Fuzzy Environment (Case study: Iran Central Iron Ore Company - Bafgh)

Document Type : Research Paper

Authors
1 Corresponding author: Associate Professor, Department of Management, Faculty of Humanities, University of Meybod, Meybod, Iran
2 Ph.D. Student, Department of Management, Faculty of Economics, Management and Accounting, Yazd University, Yazd, Iran
3 M.Sc., Department of Information Technology Management, Faculty of Humanities, Science and Arts University of Yazd, Yazd, Iran
Abstract
Nowadays, supply chain management has become more important due to the globalization of business markets. The rapid global developments have increased risks in the supply chain, the effects of which can be costly for an organization. In order to overcome the risks around them, organizations must conduct research on risk assessment in a sustainable supply chain. Therefore, identifying and ranking the effective risks in the supply chain is essential. Therefore, the present study aimed to assess risk in a sustainable supply chain with a failure analysis approach and its effects in an intuitive fuzzy environment. This article was quantitative-qualitative and was selected based on a purposeful sampling of 11 supervisors, deputies, and managers of the Central Iranian Iron Ore Company - Bafgh. First, the initial risks of the sustainable supply chain were identified by conducting a review study, then the final risks were determined based on a semi-structured interview with experts from the Bafgh Iron Ore Company in Yazd. Based on the identified risks, a research questionnaire was designed based on the failure analysis and its effects method and the necessary data was collected. After collecting the necessary data, an intuitive fuzzy research model was designed and implemented to assess the risks of a sustainable supply chain. Based on the results obtained, the most important supply chain risks are: price and cost fluctuations, inflation and exchange rate changes, and sanctions.
Keywords
Subjects

Copyright ©, Hossein Sayyadi Tooranloo, Reihaneh Hafizi Atabak, Naser Chehrehgosha

 

License

This article is released under the Creative Commons Attribution (CC BY 4.0) license. Anyone is free to copy, share, translate, and adapt this article for any purpose, whether commercial or non-commercial, as long as proper citation is given to the authors and original publication.

Abadi, Y. T. H., & Darestani, S. A. (2021). Evaluation Of Sustainable Supply Chain Risk: Evidence From The Iranian Food Industry. Journal Of Science And Technology Policy Management. https://doi.org/10.1108/JSTPM-08-2020-0121
Abbasi, E., Rostami, M. R., & Shahmoradi, Z. (2016). The Effect Of Market Monitoring Costs On Price Limit Rules. Financial Research, 17(2 #E0091), -. doi: 10.22059/jfr.2015.57313. (In Persian)
Abdel-Basset, M., & Mohamed, R. (2020). A Novel Plithogenic TOPSIS-CRITIC Model For Sustainable Supply Chain Risk Management. Journal Of Cleaner Production, 247, 119586. https://doi.org/10.1016/j.jclepro.2019.119586.
Abdullah, L., & Najib, L. (2014). A New Preference Scale Of Intuitionistic Fuzzy Analytic Hierarchy Process In Multi-Criteria Decision Making Problems. Journal Of Intelligent & Fuzzy Systems, 26(2), 1039-1049. DOI: 10.3233/IFS-130796.
Ahmed, W., & Huma, S. (2021). Impact Of Lean And Agile Strategies On Supply Chain Risk Management. Total Quality Management & Business Excellence, 32(1-2), 33-56. https://doi.org/10.1080/14783363.2018.1529558.
Asrol, M., & Taira, E. (2021). Risk Management For Improving Supply Chain Performance Of Sugarcane Agroindustry. Industrial Engineering & Management Systems, 20(1), 9-26. https://doi.org/10.7232/iems.2021.20.1.9.
Baryannis, G., Validi, S., Dani, S., & Antoniou, G. (2019). Supply Chain Risk Management And Artificial Intelligence: State Of The Art And Future Research Directions. International Journal Of Production Research, 57(7), 2179-2202. https://doi.org/10.1080/00207543.2018.1530476.
Bratt, C., Sroufe, R., & Broman, G. (2021). Implementing Strategic Sustainable Supply Chain Management. Sustainability, 13(15), 8132. https://doi.org/10.3390/su13158132.
Collier, Z. A., & Sarkis, J. (2021). The Zero Trust Supply Chain: Managing Supply Chain Risk In The Absence Of Trust. International Journal Of Production Research, 1-16. https://doi.org/10.1080/00207543.2021.1884311.
Carbone, T. A. and D. D. Tippett (2004). "Project risk management using the project risk FMEA." Engineering management journal 16(4): 28-35. https://doi.org/10.1080/10429247.2004.11415263.
Dai, J., Xie, L., & Chu, Z. (2021). Developing Sustainable Supply Chain Management: The Interplay Of Institutional Pressures And Sustainability Capabilities. Sustainable Production And Consumption, 28, 254-268. https://doi.org/10.1016/j.spc.2021.04.017.
Devi, K. (2011). Extension Of VIKOR Method In Intuitionistic Fuzzy Environment For Robot Selection. Expert Systems With Applications, 38(11), 14163-14168. https://doi.org/10.1016/j.eswa.2011.04.227.
Doai, Farzamian, & Kazem. (2019). Identifying and investigating the impact of supply chain risk components on the financial performance of Iran Khodro Khorasan Company. Scientific Journal of Supply Chain Management, 21(64), 51-73. (In Persian)
Esmizadeh, Y., & Mellat Parast, M. (2021). Logistics And Supply Chain Network Designs: Incorporating Competitive Priorities And Disruption Risk Management Perspectives. International Journal Of Logistics Research And Applications, 24(2), 174-197. https://doi.org/10.1080/13675567.2020.1744546.
Etemadi, N., Borbon-Galvez, Y., Strozzi, F., & Etemadi, T. (2021). Supply Chain Disruption Risk Management With Blockchain: A Dynamic Literature Review. Information, 12(2), 70. https://doi.org/10.3390/info12020070.
 
Fattahi, R. and M. Khalilzadeh (2018). "Risk evaluation using a novel hybrid method based on FMEA, extended MULTIMOORA, and AHP methods under fuzzy environment." Safety science 102: 290-300. https://doi.org/10.1016/j.ssci.2017.10.018.
Fallahpour, M., Safaei Ghadikolaei, A., & Fallah Lajimi, H. (2021). Identifying And Determining The Effective Risks In The Sustainable Supply Chain In Selected Dairy Companies Using CRITIC Theory. Commercial Strategies, 17(16), 184-165. Doi:10.22070/Cs.2021.15056.1150. (In Persian)
Fan, Y., & Stevenson, M. (2018). A Review Of Supply Chain Risk Management: Definition, Theory, And Research Agenda. International Journal Of Physical Distribution & Logistics Management. https://doi.org/10.1108/IJPDLM-01-2017-0043.
Farooqi, H., Badrian, M., & Mansoorpour, S. (2013). Integrated Model QFD, FMEA And Fuzzy AHP Approach To Improve Logistics Outsourcing Decision. Iranian Journal Of Supply Chain Management, 14(38), 4-11. (In Persian)
Farrokh, Zabihi Jamkhaneh, & Sholeh. (2019). Assessing the risks of a sustainable supply chain with the method of analyzing the states and causes of failure in a fuzzy environment (case study: Saba Batari). Quarterly Journal of Strategic Management in Industrial Systems (formerly Industrial Management), 14(48), 97-112.  (In Persian)
Freise, M., & Seuring, S. (2015). Social And Environmental Risk Management In Supply Chains: A Survey In The Clothing Industry. Logistics Research, 8(1), 2. https://doi.org/10.1007/s12159-015-0121-8.
Ghadge, A., Dani, S., & Kalawsky, R. (2012). Supply Chain Risk Management: Present And Future Scope. The International Journal Of Logistics Management. https://doi.org/10.1108/09574091211289200.
Gholizadeh, P., Molaalizadeh, S., & Salehi, A. (2021). Providing An Interactive/Qualitative Analysis Model For Sustainable Information Technology Supply Chain Risks In Knowledge-Based Companies. Journal Of Technology Development Management, 8(4), 107-142.doi: 10.22104/JTDM.2021.4278.2559. (In Persian)
Giannakis, M., & Papadopoulos, T. (2016). Supply Chain Sustainability: A Risk Management Approach. International Journal Of Production Economics, 171, 455-470. https://doi.org/10.1016/j.ijpe.2015.06.032.
González-Zapatero, C., González-Benito, J., Lannelongue, G., & Ferreira, L. M. (2021). Using Fit Perspectives To Explain Supply Chain Risk Management Efficacy. International Journal Of Production Research, 59(17), 5272-5283. https://doi.org/10.1080/00207543.2020.1776412.
Gurtu, A., & Johny, J. (2021). Supply Chain Risk Management: Literature Review. Risks, 9(1), 16. https://doi.org/10.3390/risks9010016.
Hasheminezhad, A., Ghanian, M., Abdeshahi, A., & Khosravipour, B. (2020). Explaining A Strategy For Bread Supply Chain Risk Management In General Agricultural Policy Goals. Quarterly Journal Of The Macro And Strategic Policies, 8(31), 452-480. Doi:10.30507/Jmsp.2020.102561.doi: 10.30507/JMSP.2020.102561. (In Persian)
He, L., Wu, Z., Xiang, W., Goh, M., Xu, Z., Song, W., . . . Wu, X. (2021). A Novel Kano-QFD-DEMATEL Approach To Optimise The Risk Resilience Solution For Sustainable Supply Chain. International Journal Of Production Research, 59(6), 1714-1735. https://doi.org/10.1080/00207543.2020.1724343.
Hosseini-Motlagh, S.-M., Ebrahimi, S., & Jokar, A. (2021). Sustainable Supply Chain Coordination Under Competition And Green Effort Scheme. Journal Of The Operational Research Society, 72(2), 304-319. https://doi.org/10.1080/01605682.2019.1671152.
Hsu, C.-H., Chang, A.-Y., Zhang, T.-Y., Lin, W.-D., & Liu, W.-L. (2021). Deploying Resilience Enablers To Mitigate Risks In Sustainable Fashion Supply Chains. Sustainability, 13(5), 2943. https://doi.org/10.3390/su13052943.
Izadi, B., & Shafie, M. (2018). A Decision Support System For Evaluation And Prioritization, The Import Risks To Manage The Effects Of Sanctions On Iran (Case Study: Farabi Pharmaceutical Company). Journal Of Production And Operations Management, 9(1), 79-106. Doi:10.22108/Jpom.2018.92395.0. doi: 10.22108/JPOM.2018.92395.0. (In Persian).
Jianying, F., Bianyu, Y., Xin, L., Dong, T., & Weisong, M. (2021). Evaluation On Risks Of Sustainable Supply Chain Based On Optimized Bp Neural Networks In Fresh Grape Industry. Computers And Electronics In Agriculture, 183, 105988. https://doi.org/10.1016/j.compag.2021.105988.
Joudaki, H., & Erfani, A. (2016). The Impact Of Exchange Rate Volatility On Bilateral Trade Between Iran And Venezuela. Journal Of Economic Research (Tahghighat- E- Eghtesadi), 51(3), 595-609. Doi:10.22059/Jte.2016.58942. doi: 10.22059/JTE.2016.58942. (In Persian)
Khan, S., Haleem, A., & Khan, M. I. (2021). Assessment Of Risk In The Management Of Halal Supply Chain Using Fuzzy Bwm Method. Paper Presented At The Supply Chain Forum: An International Journal. https://doi.org/10.1080/16258312.2020.1788905.
Koberg, E., & Longoni, A. (2019). A Systematic Review Of Sustainable Supply Chain Management In Global Supply Chains. Journal Of Cleaner Production, 207, 1084-1098. https://doi.org/10.1016/j.jclepro.2018.10.033.
Lavastre, O., Gunasekaran, A., & Spalanzani, A. (2014). Effect Of Firm Characteristics, Supplier Relationships And Techniques Used On Supply Chain Risk Management (Scrm): An Empirical Investigation On French Industrial Firms. International Journal Of Production Research, 52(11), 3381-3403. https://doi.org/10.1080/00207543.2013.878057.
Lee, S.-Y. (2021). Sustainable Supply Chain Management, Digital-Based Supply Chain Integration, And Firm Performance: A Cross-Country Empirical Comparison Between South Korea And Vietnam. Sustainability, 13(13), 7315. https://doi.org/10.3390/su13137315.
Lee, V., Marasini, D., Dong, W., Lee, H.-J., & Lee, D. (2021). Comparative Study Of Key Supply Chain Management Elements In Sustainability Reports. Businesses, 1(3), 168-195. https://doi.org/10.3390/businesses1030013.
Li, H., Díaz, H., & Soares, C. G. (2021). A Failure Analysis Of Floating Offshore Wind Turbines Using Ahp-Fmea Methodology. Ocean Engineering, 234, 109261. https://doi.org/10.1016/j.oceaneng.2021.109261.
Liu, H.-C., Wang, L.-E., Li, Z., & Hu, Y.-P. (2018). Improving Risk Evaluation In Fmea With Cloud Model And Hierarchical Topsis Method. Ieee Transactions On Fuzzy Systems, 27(1), 84-95. doi: 10.1109/TFUZZ.2018.2861719.
Mageto, J. (2021). Big Data Analytics In Sustainable Supply Chain Management: A Focus On Manufacturing Supply Chains. Sustainability, 13(13), 7101. https://doi.org/10.3390/su13137101.
Mirzaei, H., Falihi, N., & Mashhadian Maleki, M. (2012). The Effect Of Uncertainty Rate Of Macro–Economic Variables (Inflation And Exchange Rate) On Credit Risk Legal Entities Of Tejarat Bank. Journal Of Financial Economics (Financial Economics And Development), 6(18), -. (In Persian).
Moktadir, M. A., Dwivedi, A., Khan, N. S., Paul, S. K., Khan, S. A., Ahmed, S., & Sultana, R. (2021). Analysis Of Risk Factors In Sustainable Supply Chain Management In An Emerging Economy Of Leather Industry. Journal Of Cleaner Production, 283, 124641. https://doi.org/10.1016/j.jclepro.2020.124641.
Mousavi, S. M., Vahdani, B., & Behzadi, S. S. (2016). Designing a model of intuitionistic fuzzy VIKOR in multi-attribute group decision-making problems.‏
Munir, M., Jajja, M. S. S., Chatha, K. A., & Farooq, S. (2020). Supply Chain Risk Management And Operational Performance: The Enabling Role Of Supply Chain Integration. International Journal Of Production Economics, 227, 107667. https://doi.org/10.1016/j.ijpe.2020.107667.
Nagariya, R., Kumar, D., & Kumar, I. (2021). Sustainable Service Supply Chain Management: From A Systematic Literature Review To A Conceptual Framework For Performance Evaluation Of Service Only Supply Chain. Benchmarking: An International Journal. https://doi.org/10.1108/BIJ-01-2021-0040.
Niknami, R. (2015). European Sanctions Against Iran: Impacts And Effectiveness. Iranian Review Of Foreign Affairs, 6(2 (22)), -. (In Persian)
Nobanee, H., Al Hamadi, F. Y., Abdulaziz, F. A., Abukarsh, L. S., Alqahtani, A. F., Alsubaey, S. K., . . . Almansoori, H. A. (2021). A Bibliometric Analysis Of Sustainability And Risk Management. Sustainability, 13(6), 3277. https://doi.org/10.3390/su13063277.
Pahlavani, M. (2014). The Effect Of Exchange Rate Volatility On Iran’s Raisin Export. Journal Of Agricultural Economics And Development, 28(2), 157-163. Doi:10.22067/Jead2.V1391i7.34104. (In Persian)
Pournader, M., Kach, A., & Talluri, S. (2020). A Review Of The Existing And Emerging Topics In The Supply Chain Risk Management Literature. Decision Sciences, 51(4), 867-919. https://doi.org/10.1111/deci.12470.
Raj, A., Modak, N. M., Kelle, P., & Singh, B. (2021). Analysis Of A Dyadic Sustainable Supply Chain Under Asymmetric Information. European Journal Of Operational Research, 289(2), 582-594. https://doi.org/10.1016/j.ejor.2020.07.042.
Rezaei, F., Firouz Alizadeh, A., & Nour Mohammadi, E. (2021). The Relationship Between Management Capabilities And Components Of Enterprise Risk Management. The Financial Accounting And Auditing Researches, 12(48 #F001335), -. (In Persian)
Rostamzadeh, R., Ghorabaee, M. K., Govindan, K., Esmaeili, A., & Nobar, H. B. K. (2018). Evaluation Of Sustainable Supply Chain Risk Management Using An Integrated Fuzzy Topsis-Critic Approach. Journal Of Cleaner Production, 175, 651-669. https://doi.org/10.1016/j.jclepro.2017.12.071.
Salahi, F. (2020). Providing A Model To Reduce The Cost Of Supply Chain Risk With A Hybrid Approach. Management Accounting, 13(45), 155-167. (In Persian)
Salamai, A. A. (2021). Feedback And User Behavior Trust And Reputation In Risk Management. Journal Of Computer Science And Information Systems, 20, 18.
Sarwar, A., Zafar, A., & Qadir, A. (2021). Analysis And Prioritization Of Risk Factors In The Management Of Halal Supply Chain Management. Discover Sustainability, 2(1), 1-10.https://doi.org/10.1007/s43621-021-00039-6.
Shad, M. K., Lai, F.-W., Fatt, C. L., Klemeš, J. J., & Bokhari, A. (2019). Integrating Sustainability Reporting Into Enterprise Risk Management And Its Relationship With Business Performance: A Conceptual Framework. Journal Of Cleaner Production, 208, 415-425. https://doi.org/10.1016/j.jclepro.2018.10.120.
Shahnoushi, N., Fakari, B., & Kojouri, M. (2012). Analysing Corn Price Fluctuations And Cycles Using Garch Model And Harmonic Pattern. Agricultural Economics, 6(2), 63-81. (In Persian)
Shirmardi, H., Fazeliyan, S. M., & Okhravi, A. H. (2013). Recognition And Prioritization Of Oil Standard Parallel Salaf Papers' Risks Using Fuzzy Analytic Hierarchy Process (Ahp). Journal Of Iran's Economic Essays, 10(19), 141-168. (In Persian)
Singhal, P., Agarwal, G., & Mittal, M. L. (2011). Supply Chain Risk Management: Review, Classification And Future Research Directions. International Journal Of Business Science & Applied Management (Ijbsam), 6(3), 15-42.
Soroush, A., & Sadeghy, M. (2008). Management Risks Of Ijarah Securities (Ijarah Sukuks). Eghtesad-E Islami, 7(27), -.(In Persian)
Su, Z., Zhang, M., & Wu, W. (2021). Visualizing Sustainable Supply Chain Management: A Systematic Scientometric Review. Sustainability, 13(8), 4409. https://doi.org/10.3390/su13084409.
Subriadi, A. P., & Najwa, N. F. (2020). The Consistency Analysis Of Failure Mode And Effect Analysis (Fmea) In Information Technology Risk Assessment. Heliyon, 6(1), E03161. https://doi.org/10.1016/j.heliyon.2020.e03161.
Tang, O., & Musa, S. N. (2011). Identifying Risk Issues And Research Advancements In Supply Chain Risk Management. International Journal Of Production Economics, 133(1), 25-34. https://doi.org/10.1016/j.ijpe.2010.06.013.
Tavakoli, A., & Sayyah, M. (2010). The Impact Of Exchange Rate Fluctuations On Economic Activities In Iran. Money And Economy (Persian), 2(4), -. (In Persian)
Tubis, A. A., & WerbiƄska-Wojciechowska, S. (2021). Risk Management Maturity Model For Logistic Processes. Sustainability, 13(2), 659. https://doi.org/10.3390/su13020659.
Ülkü, M. A., & Engau, A. (2021). Sustainable Supply Chain Analytics. Industry, Innovation And Infrastructure, 1123-1134. https://doi.org/10.1007/978-3-319-95873-6_117.
Veisi, N., Makhmali, H., & Kamali, P. (2019). The Impact Of Inflation Targeting Policy On Currency Management In Developing Countries. Journal Of Strategic Management Studies, 10(38), 207-235. (In Persian)
Wang, W., X. Liu, X. Chen and Y. Qin (2019). "Risk assessment based on hybrid FMEA framework by considering decision maker’s psychological behavior character." Computers & Industrial Engineering 136: 516-527. https://doi.org/10.1016/j.cie.2019.07.051.
Wolniak, R. (2019). Problems Of Use Of Fmea Method In Industrial Enterprise. Production Engineering Archives, 23. https://doi.org/10.30657/pea.2019.23.02.
Wu, Z., Liu, W., & Nie, W. (2021). Literature Review And Prospect Of The Development And Application Of Fmea In Manufacturing Industry. The International Journal Of Advanced Manufacturing Technology, 112(5), 1409-1436. https://doi.org/10.1007/s00170-020-06425-0.
Xiao, Q., Chen, L., Xie, M., & Wang, C. (2021). Optimal Contract Design In Sustainable Supply Chain: Interactive Impacts Of Fairness Concern And Overconfidence. Journal Of The Operational Research Society, 72(7), 1505-1524. https://doi.org/10.1080/01605682.2020.1727784.
Xu, S., Zhang, X., Feng, L., & Yang, W. (2020). Disruption Risks In Supply Chain Management: A Literature Review Based On Bibliometric Analysis. International Journal Of Production Research, 58(11), 3508-3526. https://doi.org/10.1080/00207543.2020.1717011.
Yadav, D., Kumari, R., Kumar, N., & Sarkar, B. (2021). Reduction Of Waste And Carbon Emission Through The Selection Of Items With Cross-Price Elasticity Of Demand To Form A Sustainable Supply Chain With Preservation Technology. Journal Of Cleaner Production, 297, 126298. https://doi.org/10.1016/j.jclepro.2021.126298.
Yang, J., Liu, H., Xiao, F., & Wang, J. (2021). Identification Of Key Drivers For Sustainable Supply-Chain Management Of Fresh Food Based On Rough Dematel. International Journal Of Information Systems And Supply Chain Management (Ijisscm), 14(2), 1-29. DOI: 10.4018/IJISSCM.2021040101.
Yucesan, M., Gul, M., & Celik, E. (2021). A Holistic Fmea Approach By Fuzzy-Based Bayesian Network And Best–Worst Method. Complex & Intelligent Systems, 7(3), 1547-1564. https://doi.org/10.1007/s40747-021-00279-z.
Zandhessami, H., & Savoji, A. (2012). Risk Management In Supply Chain Management. Journal Of Development & Evolution Management, 4(9), -.
Volume 3, Issue 2 - Serial Number 7
Serial No. 7, Summer Quarterly
Summer 2023
Pages 61-88

  • Receive Date 10 September 2022
  • Revise Date 04 March 2023
  • Accept Date 23 July 2023
  • First Publish Date 11 September 2023
  • Publish Date 11 September 2023