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

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  • 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
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    References listed on IDEAS

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    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.

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