An Iterative Multi-Criteria Decision Making Approach to Managing Risks of Supply Chain Disruptions

Liu Jingnan

Abstract

This thesis examines the supply chain risk definition and its mitigation methodologies discussed in various academic papers and how the integration and iterative approach proposed in this thesis could better tackle the disruption risks by offering a system perspective and a room for creativity and improvements. As an introduction, the thesis concludes the literature review on supply chain risks and risk mitigation strategies in previous academic works and identified the most prominent problem areas in supply chain risks.

The thesis focuses on supply risk mitigation strategy by proposing the integration approach as the methodology, to illustrate how Analytic Hierarchy Process and Multiple Attribute Trade-off Analysis can be incorporated to contribute to the decision-making process on different sourcing strategies by offering a systematic perspective. The iterative approach on a scenario study also demonstrates how more analysis could be implemented should new alternative comes up to show how decision-making process can be reviewed to ensure the choice made is always up-to-date.

The thesis ends with a conclusion that with more models included in the integration approach, the result will be more accurate and systematic for decision makers to select the appropriate sourcing strategy that is best suited for the corporation and how the systematic approach proposed by this thesis has improved the decision making processes in supply chain management in term of risk identification and mitigation.