FUZZY FAILURE MODE AND EFFECT ANALYSIS MODEL FOR OPERATIONAL SUPPLY CHAIN RISKS ASSESSMENT: AN APPLICATION IN CANNED TUNA MANUFACTURER IN THAILAND

Abstract

Background: This study proposes a multi-criterion decision-making (MCDM) framework for operational supply chain risks assessment based on fuzzy failure mode effect analysis model. The proposed framework attempts to overcome some weaknesses and disadvantages of the traditional FMEA in many aspects such as (i) considering “degree of difficulty to eliminate risks” in the assessment process, (ii) using MCDM ranking methodology instead of a risk priority number, (iii) taking both subjective and objective weights of risk criteria into account. Application of the proposed framework used canned tuna production in Thailand as a case study. Methods: In this study, the operational supply chain risks assessment is treated as fuzzy MCDM problem. Subjective weights of risk criteria are determined by experts’ judgements. Objective weights are derived by Shannon entropy method. VIKOR approach is employed to prioritize the failure modes. A sensitivity analysis is performed to examine the robustness of the proposed framework. Results and conclusions: The findings from this study indicates that the most three critical FMs are “risk of product deterioration” followed by “risk of volatility raw materials supplied” and “risk of variabilities in production processes”, respectively. It recommends that the practitioners in canned tuna industry should give the priority to mitigate these risks. Although the present study focuses on canned tuna industry, the other similar industries can apply this proposed framework to assess their operational supply chain risks in the same way.