A Neutrosophic AHP and TOPSIS Framework for Supply Chain Risk Assessment in Automotive Industry of Pakistan

Muhammad Junaid, Ye Xue, Muzzammil Wasim Syed, Ji Zu Li and Muhammad Ziaullah
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Muhammad Junaid: School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China
Ye Xue: School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China
Muzzammil Wasim Syed: School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China
Ji Zu Li: School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China
Muhammad Ziaullah: Department of Business Administration, Ghazi University, D.G. Khan 32200, Pakistan

Sustainability, 2019, vol. 12, issue 1, 1-26

Abstract: Risk is inherent in all parts of life and brings consequences, but when it specifically emerges in supply chains, it is susceptible. Therefore, this study aims at identifying and assessing supply chain risks and developing criteria for managing these risks. Supply chain (SC) risks consist of complex, uncertain, and vague information, but risk assessment techniques in the literature have been unable to handle complexity, uncertainty, and vagueness. Therefore, this study presents a holistic approach to supply chain risk management. In this paper, neutrosophic (N) theory is merged with the analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) to deal with complexity, uncertainty, and vagueness. Then the proposed methodology is practically implemented through a case study on the automotive industry. SC resilience, SC agility, and SC robustness were selected as criteria for managing supply chain risks and analyzed using N-AHP. Furthermore, seventeen risks were identified and assessed by using N-TOPSIS. Results suggest supply chain resilience is the most important criterion for managing supply chain risks. Moreover, supplier delivery delays, supplier quality problems, supplier communication failures, and forecasting errors are the most vulnerable risks that occur in supply chains of the automotive industry in Pakistan.

Keywords: agility; AHP; neutrosophic theory; TOPSIS; resilience; robustness; supply chain risk management (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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