IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v179y2016icp44-58.html
   My bibliography  Save this article

A fuzzy dynamic Inoperability Input–output Model for strategic risk management in Global Production Networks

Author

Listed:
  • Niknejad, Ali
  • Petrovic, Dobrila

Abstract

Strategic decision making in Global Production Networks (GPNs) is quite challenging, especially due to the unavailability of precise quantitative knowledge, variety of relevant risk factors that needs to be considered and the interdependencies that can exist between multiple partners across the globe. In this paper, a risk evaluation method for GPNs based on a novel Fuzzy Dynamic Inoperability Input Output Model (Fuzzy DIIM) is proposed. A fuzzy multi-criteria approach is developed to determine interdependencies between nodes in a GPN using experts’ knowledge. An efficient and accurate method based on fuzzy interval calculus in the Fuzzy DIIM is proposed. The risk evaluation method takes into account various risk scenarios relevant to the GPN and likelihoods of their occurrences. A case of beverage production from the food industry is used to showcase the application of the proposed risk evaluation method. It is demonstrated how it can be used for GPN strategic decision making. The impact of risk on inoperability of alternative GPN configurations considering different risk scenarios is analysed.

Suggested Citation

  • Niknejad, Ali & Petrovic, Dobrila, 2016. "A fuzzy dynamic Inoperability Input–output Model for strategic risk management in Global Production Networks," International Journal of Production Economics, Elsevier, vol. 179(C), pages 44-58.
    • Handle: RePEc:eee:proeco:v:179:y:2016:i:c:p:44-58
    DOI: 10.1016/j.ijpe.2016.05.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527316300871
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2016.05.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Setola, Roberto & De Porcellinis, Stefano & Sforna, Marino, 2009. "Critical infrastructure dependency assessment using the input–output inoperability model," International Journal of Critical Infrastructure Protection, Elsevier, vol. 2(4), pages 170-178.
    2. Bueno-Solano, Alfredo & Cedillo-Campos, Miguel Gastón, 2014. "Dynamic impact on global supply chains performance of disruptions propagation produced by terrorist acts," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 61(C), pages 1-12.
    3. Heckmann, Iris & Comes, Tina & Nickel, Stefan, 2015. "A critical review on supply chain risk – Definition, measure and modeling," Omega, Elsevier, vol. 52(C), pages 119-132.
    4. Azaron, A. & Brown, K.N. & Tarim, S.A. & Modarres, M., 2008. "A multi-objective stochastic programming approach for supply chain design considering risk," International Journal of Production Economics, Elsevier, vol. 116(1), pages 129-138, November.
    5. Mizgier, Kamil J. & Wagner, Stephan M. & Jüttner, Matthias P., 2015. "Disentangling diversification in supply chain networks," International Journal of Production Economics, Elsevier, vol. 162(C), pages 115-124.
    6. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    7. Oliva, Gabriele & Panzieri, Stefano & Setola, Roberto, 2010. "Agent-based input–output interdependency model," International Journal of Critical Infrastructure Protection, Elsevier, vol. 3(2), pages 76-82.
    8. Barker, Kash & Santos, Joost R., 2010. "Measuring the efficacy of inventory with a dynamic input-output model," International Journal of Production Economics, Elsevier, vol. 126(1), pages 130-143, July.
    9. Oliva, Gabriele & Panzieri, Stefano & Setola, Roberto, 2011. "Fuzzy dynamic input–output inoperability model," International Journal of Critical Infrastructure Protection, Elsevier, vol. 4(3), pages 165-175.
    10. Baghersad, Milad & Zobel, Christopher W., 2015. "Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors," International Journal of Production Economics, Elsevier, vol. 168(C), pages 71-80.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lili Wang & Bin Hu & Yihang Feng & Yanting Duan & Wuyi Zhang, 2022. "Food supply network disruption and mitigation: an integrated perspective of traceability technology and network structure," Computational and Mathematical Organization Theory, Springer, vol. 28(4), pages 352-389, December.
    2. Yaseen, Qazi Muhammad & Akhtar, Rehman & Khalil, Muhammad Kaleem Ullah & Usman Jan, Qazi Muhammad, 2020. "Dynamic inoperability input-output modeling for economic losses estimation in industries during flooding," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    3. Fraccascia, Luca & Yazan, Devrim Murat & Albino, Vito & Zijm, Henk, 2020. "The role of redundancy in industrial symbiotic business development: A theoretical framework explored by agent-based simulation," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Fang, Yi-Ping & Zio, Enrico, 2019. "An adaptive robust framework for the optimization of the resilience of interdependent infrastructures under natural hazards," European Journal of Operational Research, Elsevier, vol. 276(3), pages 1119-1136.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goldbeck, Nils & Angeloudis, Panagiotis & Ochieng, Washington, 2020. "Optimal supply chain resilience with consideration of failure propagation and repair logistics," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 133(C).
    2. Antonio Zavala-Alcívar & María-José Verdecho & Juan-José Alfaro-Saiz, 2020. "A Conceptual Framework to Manage Resilience and Increase Sustainability in the Supply Chain," Sustainability, MDPI, vol. 12(16), pages 1-38, August.
    3. Rahmatallah Poudineh and Tooraj Jamasb, 2017. "Electricity Supply Interruptions: Sectoral Interdependencies and the Cost of Energy Not Served for the Scottish Economy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    4. Baghersad, Milad & Zobel, Christopher W., 2015. "Economic impact of production bottlenecks caused by disasters impacting interdependent industry sectors," International Journal of Production Economics, Elsevier, vol. 168(C), pages 71-80.
    5. Sahling, Florian & Kayser, Ariane, 2016. "Strategic supply network planning with vendor selection under consideration of risk and demand uncertainty," Omega, Elsevier, vol. 59(PB), pages 201-214.
    6. Fattahi, Mohammad & Govindan, Kannan & Keyvanshokooh, Esmaeil, 2017. "Responsive and resilient supply chain network design under operational and disruption risks with delivery lead-time sensitive customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 176-200.
    7. Olaf Jonkeren & Ivano Azzini & Luca Galbusera & Stavros Ntalampiras & Georgios Giannopoulos, 2015. "Analysis of Critical Infrastructure Network Failure in the European Union: A Combined Systems Engineering and Economic Model," Networks and Spatial Economics, Springer, vol. 15(2), pages 253-270, June.
    8. Brandenburg, Marcus, 2017. "A hybrid approach to configure eco-efficient supply chains under consideration of performance and risk aspects," Omega, Elsevier, vol. 70(C), pages 58-76.
    9. Alikhani, Reza & Torabi, S.Ali & Altay, Nezih, 2021. "Retail supply chain network design with concurrent resilience capabilities," International Journal of Production Economics, Elsevier, vol. 234(C).
    10. Tang, Christopher S. & Davarzani, Hoda & Sarkis, Joseph, 2015. "Quantitative models for managing supply chain risks: A reviewAuthor-Name: Fahimnia, Behnam," European Journal of Operational Research, Elsevier, vol. 247(1), pages 1-15.
    11. Olaf Jonkeren & Bogdan Dorneanu & Georgios Giannopoulos & David Ward, 2012. "Regional economic assessment of Critical Infrastructure failure in the EU: A combined systems engineering and economic model," ERSA conference papers ersa12p92, European Regional Science Association.
    12. Michael Francis D. Benjamin & Aristotle T. Ubando & Luis F. Razon & Raymond R. Tan, 2015. "Analyzing the disruption resilience of bioenergy parks using dynamic inoperability input–output modeling," Environment Systems and Decisions, Springer, vol. 35(3), pages 351-362, September.
    13. Sina Samimi & Sadoullah Ebrahimnejad & Mohammad Mojtahedi, 2020. "Analysis of the susceptibility of interdependent infrastructures using fuzzy input–output inoperability model: the case of flood hazards in Tehran," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 100(1), pages 69-88, January.
    14. Klein, Peter & Klein, Fabian, 2019. "Dynamics of interdependent critical infrastructures – A mathematical model with unexpected results," International Journal of Critical Infrastructure Protection, Elsevier, vol. 24(C), pages 69-77.
    15. Cecil Ash & Uday Venkatadri & Claver Diallo & Peter Vanberkel & Ahmed Saif, 2023. "PPE Supply Optimization Under Risks of Disruption from the COVID-19 Pandemic," SN Operations Research Forum, Springer, vol. 4(2), pages 1-29, June.
    16. Govindan, Kannan & Fattahi, Mohammad, 2017. "Investigating risk and robustness measures for supply chain network design under demand uncertainty: A case study of glass supply chain," International Journal of Production Economics, Elsevier, vol. 183(PC), pages 680-699.
    17. Li, Shanshan & He, Yong & Chen, Lujie, 2017. "Dynamic strategies for supply disruptions in production-inventory systems," International Journal of Production Economics, Elsevier, vol. 194(C), pages 88-101.
    18. Wenping Xu & Zongjun Wang & Liu Hong & Ligang He & Xueguang Chen, 2015. "The uncertainty recovery analysis for interdependent infrastructure systems using the dynamic inoperability input–output model," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(7), pages 1299-1306, May.
    19. Lam, C.Y. & Tai, K., 2018. "Modeling infrastructure interdependencies by integrating network and fuzzy set theory," International Journal of Critical Infrastructure Protection, Elsevier, vol. 22(C), pages 51-61.
    20. Pant, Raghav & Barker, Kash & Zobel, Christopher W., 2014. "Static and dynamic metrics of economic resilience for interdependent infrastructure and industry sectors," Reliability Engineering and System Safety, Elsevier, vol. 125(C), pages 92-102.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:179:y:2016:i:c:p:44-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.