A multi-objective approach to supply chain visibility and risk

•We investigate the effects of supply chain visibility and risk on SC performance.•Our model incorporates three objectives under several functional constraints.•Our results suggest that decision makers tend to mitigate SCR before enhance SCV. This paper investigates the twin effects of supply chain...

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Bibliographic Details
Published in:European journal of operational research 2014-02, Vol.233 (1), p.125-130
Main Authors: Yu, Min-Chun, Goh, Mark
Format: Article
Language:English
Subjects:
Decision making
Decision making models
Demand
Mathematical models
Minimization
Multiple objective programming
Numerical analysis
Operations research
Optimization
Production capacity
Risk
Risk assessment
Studies
Supply chain management
Supply chain risk
Supply chain visibility
Supply chains
Visibility
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Summary:•We investigate the effects of supply chain visibility and risk on SC performance.•Our model incorporates three objectives under several functional constraints.•Our results suggest that decision makers tend to mitigate SCR before enhance SCV. This paper investigates the twin effects of supply chain visibility (SCV) and supply chain risk (SCR) on supply chain performance. Operationally, SCV has been linked to the capability of sharing timely and accurate information on exogenous demand, quantity and location of inventory, transport related cost, and other logistics activities throughout an entire supply chain. Similarly, SCR can be viewed as the likelihood that an adverse event has occurred during a certain epoch within a supply chain and the associated consequences of that event which affects supply chain performance. Given the multi-faceted attributes of the decision making process which involves many stages, objectives, and stakeholders, it beckons research into this aspect of the supply chain to utilize a fuzzy multi-objective decision making approach to model SCV and SCR from an operational perspective. Hence, our model incorporates the objectives of SCV maximization, SCR minimization, and cost minimization under the constraints of budget, customer demand, production capacity, and supply availability. A numerical example is used to demonstrate the applicability of the model. Our results suggest that decision makers tend to mitigate SCR first then enhance SCV.
ISSN:0377-2217
1872-6860
DOI:10.1016/j.ejor.2013.08.037