ASSESSMENT OF SUPPLIER’S RISK IN LOGISTICS NETWORKS

1 BUKOWSKI Lech
Co-authors:
2 FELIKS Jerzy
Institutions:
1 The University of Dąbrowa Górnicza, Dąbrowa Górnicza, Poland, EU, lbukowski@wsb.edu.pl
2 AGH University of Science and Technology, Kraków, Poland, EU, jfeliks@zarz.agh.edu.pl
Conference:
Carpathian Logistics Congress, Hotel Tatra, Zakopane, Poland, EU, November 28th - 30th 2016
Proceedings:
Proceedings Carpathian Logistics Congress
Pages:
12-19
ISBN:
978-80-87294-76-5
ISSN:
2694-9318
Published:
30th October 2017
Proceedings of the conference were published in Web of Science.
Metrics:
663 views / 186 downloads
Abstract

The aim of this paper is to propose a new methodology of supplier’s risk assessment. Based on the classic method of FMEA and its modifications we have developed a new method of supplier’s risk assessment. This modification is closely linked with the concept of risk-based thinking as well as fuzzy reasoning, and therefore seems to be appropriate for assessment of supplier’s risk in logistics networks. The method is applied iteratively in seven main steps. Firstly, a team of experts selects potential risk categories, based on the literature, data and their own experience. The set of risk categories is the basis for generating of possible threats and hazards, which may occur within the analysed system. These risks become system exposures, and can interrupt the supply process continuity. To these events we prescribe the measures of uncertainty of their occurrence in the form of fuzzy probabilities. The next step of the process is an evaluation of the exposure frequency, which represents a rating of how often a supplier performs the activity where risk exposure occurs. The last step is to assess the impact severity in the form of losses caused by these events, and to calculate the risk priority number as a product of fuzzy numbers.

Keywords: risk, logistics networks, FMEA, fuzzy

© This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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