Engineering Applications of Artificial Intelligence 87 (2020) 103338
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Engineering Applications of Artificial Intelligence
journal homepage: www.elsevier.com/locate/engappai
A grey-layered ANP based decision support model for analyzing strategies of
resilience in electronic supply chains
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R. Rajesh
Management Division, ABV-Indian Institute of Information Technology & Management, Gwalior 474015, India
ARTICLE INFO
Keywords:
Supply chain resilience
Supply chain risk
Resilient strategies
Grey theory
Analytic network process
ABSTRACT
Augmented globalization and vertical integration have made contemporary supply chains an intricate network
subject to a number of vulnerabilities. Preemptive measures are needed for dealing with mutable risks and
vulnerabilities to safeguard robust supply chain systems. Supply chain risk management (SCRM) connotes a
set of risk management responses essentially instigated to confront supply chain risks. As supply chain risks
are intertwined, one resilient strategy for risk mitigation can moderate several supply chain risks. A complex
decision making problem involving twelve major supply chain risks and twenty one resilient strategies for risk
mitigation have been acknowledged in this research with archetypal focus on electronics manufacturing supply
chains. A combination of Multi criteria decision aid (MCDA) and artificial intelligence (AI) is increasingly used
in decision making of complex real world problems. A decision support model incorporating an amalgamation
of grey theory and layered analytic network process (ANP) has been employed for quantifying various resilient
strategies for risk mitigation. The proposed model was also applied in a practical setting taking a case study
of an electronics manufacturing company. Sensitivity analysis was also conducted to ensure the robustness
of obtained results. The combined methodology proposed in this research could be effectively used by top
management, to pigeonhole the resilient supply chain strategies for better managing their supply chains.
1. Introduction
Supply chain systems are becoming more lengthy and complex, as
a result of increased globalization and vertical integrations. In this
scenario, proactive practices need to be adopted for securing supply
chain systems by tackling core vulnerabilities. Vulnerabilities along
with associated supply chain risks increases with increasing interactive
complexities of the supply networks (Christopher and Peck, 2004).
Hence, complex decision making situations involving evaluation of
multiple criteria using several decision aids is becoming typical in
modern supply chains. Multi criteria decision aid (MCDA) and artificial
intelligence (AI) have been applied for increasing the success of deci-
sion making considering complex real world problems. Supply chain
risk management (SCRM) characterizes tools and practices of com-
plex real world problems to better manage various supply chain risks
(Christopher and Lee, 2004). SCRM extends its principles and practices
over three major areas namely, supply chain management, enterprise risk
management and crises management. As most of the companies develop
plans to protect their supply chains against recurrent low impact risks
and usually avoid high impact low likelihood risks, it is essential that
SCRM should be integrated with supply chain planning (Chopra and
Sodhi, 2012).
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No author associated with this paper has disclosed any potential or pertinent conflicts which may be perceived to have impending conflict with this work.
For full disclosure statements refer to https://doi.org/10.1016/j.engappai.2019.103338.
E-mail addresses: rajesh@iiitm.ac.in, rajeshambzha@gmail.com.
The resilience capabilities and the sustainable competitive advan-
tage of the firm increases when the level of risk sharing and the top
management support increases (Ponomarov and Holcomb, 2009). The
level of risk sharing is dependent on continual risk assessment, risk
analysis and risk mitigation practices. Natural disasters, war, terrorism
or any other external factors could lead to sudden unexpected break
downs of supply chain, known as disruptions. Apart from that, security
related issues are more frequently atop the minds of end consumers
making it necessary for the members in the supply chain to take a
new look at vulnerability measures. As observed from a complexity
perspective of SCRM, managers are advised to reduce the interactive
complexity of the supply chain by reducing the level of buffers at
different stages. If the network is having a reasonably high interac-
tive complexity, improved buffer levels are recommended to manage
potential vulnerabilities (Yang and Yang, 2010).
Managers will be able to tailor balanced and effective risk mitiga-
tion strategies for their firms, by properly understanding the supply
chain risks, its variety and inter connectedness. Also, managers should
take into consideration of the frequency of occurrence of similar risks,
as a measure of supply chain vulnerability (Manuj and Mentzer, 2008).
In general, in order to meet the challenges of a turbulent business envi-
ronment and to tackle vulnerabilities, structural flexibility of the supply
https://doi.org/10.1016/j.engappai.2019.103338
Received 30 June 2016; Received in revised form 12 March 2018; Accepted 28 October 2019
Available online xxxx
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