Applying a Safety System Versus the Risky Suppliers

Document Type : Research Paper


Yazd University


The changing factors of supply chain management include the evolution of technology in market conditions, the transformation of business practices, new expectations of partners in the supply chain, and demand for more value-added from the end-user consumer. Manufacturing organizations require more flexibility to maintain a competitive advantage as well as to operate in a dynamic environment. As the complexity increases, uncertainty and levels also increase in the supply chain. Hence, risk management has become a major issue in the supply chain and plays a significant role in the supply chain performance and the continuity of the organization's dynamics. In the paper, the process of supply chain risk management has been gone through and a risk mitigation model has been presented. The goal of the paper is to expand the proposed model of Kirilmaz & Erol in which the number of commodities increases. In the first step of the suggested method, a procurement plan is provided by a linear planning model, taking into account cost constraints. In the second step, the plan is revised by considering risk criteria for planning. The transition of orders is made to reduce the risk from high risky suppliers to less risky suppliers. The process of supply chain risk management has been performed by an electromotor company in the Middle East. We use the Kirilmaz & Erol model to validate the proposed model.


Arshadi khamseh, A., and Mohsenzadeh Ledari, A. (2018). Optimal Decisions in a Dual-channel Supply Chain for the Substitute Products with the Special Orders under Disruption Risk and Brand Consideration. International Journal of Engineering, 31(5), 759-769.
Cano-Olivos, P., Sosa-Gallardo, J.F., and Nchez-Partida, D. (2022). Risks in the Automotive Industry Supply Chain. International Journal of Supply and Operations Management, 9(1), 56-79.
Grötsch, V.M., Blome, C., and Schleper, M.C. (2013). Antecedents of Proactive Supply Chain Risk Management – A Contingency Theory Perspective. International Journal of Production Research, 51(10), 2842–2867.
Hajian Heidary, M. (2023). Risk Assessment in the Global Supplier Selection Considering Supply Disruption: A Simulation Optimization Approach. International Journal of Supply and Operations Management, 10(4), 501-522.
Hendricks, K.B. and Singhal, V.R. (2005). An empirical analysis of the effect of supply chain disruptions on long-run stock price performance and equity risk of the firm. Production and Operations Management, 14(1), 35–52.
Kilubi, I. (2016). The strategies of supply chain risk management – a synthesis and classification. International Journal of Logistics Research and Applications, 19(6), 604-629.
Kirilmaz, O., and Erol, S. (2017). A proactive approach to supply chain risk management: Shifting orders among suppliers to mitigate the supply side risks. Journal of Purchasing & Supply Management, 23, 54-65.
Knemeyer, A.M., Zinn, W., and Eroglu, C. (2009). Proactive planning for catastrophic events in supply chains. Journal of Operations Management, 27(2), 141-153.
Li, X., and Barnes, I. (2008). Proactive Supply Risk Management Methods for Building a Robust Supply Selection Process When Sourcing from Emerging Markets. Strategic Outsourcing: An International Journal, 1(3), 252–267.
Mirghafouri, S.H., Morovati SharifAbadi, A., and Asadian Ardakani, F. (2012). An Analysis of Suppliers' Risks in the Supply Chain with Grey Analysis Approach and Fuzzy VIKOR. Industrial Management, 4(2), 153-178.
Mohajeri, A., Mahdavi, I., and Fazlollahtabar, H. (2011). An Interactive Allocation for Depot-Customer-Depot in a Multi Aspect Supply Chain Network. International Journal of Engineering, 24(4), 367-376.
Musson, M.B.C. (2001). Strategies for Manufacturing and Logistics. in Hiles, A. (Eds.), The Definitive Handbook of Business Continuity Management, 3rd ed., John Wiley & Sons Ltd.
Norrman, A., and Jansso, U. (2004). Ericsson’s proactive supply chain risk management approach after a serious subsupplier accident. International Journal of Physical Distribution & Logistics Management, 34(5), 434-456.
Tomlin, B. (2006). On the value of mitigation and contingency strategies for managing supply chain disruption risks. Management Science, 52(5), 639- 657.
Tummala, R., and Schoenherr, T. (2011). Assessing and managing risks using the Supply Chain Risk Management Process (SCRMP). Supply Chain Management: An International Journal, 16(6), 474-483.
Xia, D., and Chen, B. (2011). A comprehensive decision-making model for risk management of supply chain. Expert Systems with Applications, 38, 4957–4966.