Risk Assessment for Complex Systems Based on Fuzzy Cognitive Maps: A Case of the Biopharmaceutical Industry

Analyzing the supply chain (SC) of biopharmaceutical drugs can be challenging due to their complexity, the existence of a wide variety of risks, and the dynamics of the system. This paper presents a framework for evaluating the SC risks of Iranian biopharmaceutical companies based on cause-and-effect relationships and fuzzy cognitive maps (FCMs). We first interviewed several biopharmaceutical supply experts to learn about potential SC risks, causal relationships among FCM concepts, FCM structure, and FCM activation cycle. The most critical and relevant risks and significant elements of the SCs, such as cost, time, and quality, were identified as relevant FCM concepts. Then, we used failure mode and effects analysis (FMEA) and the FCM of the SC risks to assess the impacts of the biopharmaceutical SC risks on each other and on the crucial elements of the SCs. The Hebbian learning algorithms were then applied to train the FCM models. We tested different scenarios to evaluate the impacts of FCM concepts on the SC risks. The proposed approach can prioritize risk factors and, more importantly, predict and analyze the effect of each risk factor/risk group on other risks or the outcome of a given risk. The proposed FCM features and the knowledge gained from evaluating them can provide practical and helpful information to pharmaceutical companies to deal with their supply risks more efficiently.