Supply Chain Disruption Risk Evaluation Based on TOPSIS Method with Sensitivity Analyses

The latent risk of disruption to supply chain made mangers come to understand disruption risks in supply, transportation, freight breaches, production facilities, communication/information flow and human resource capacity. Managers need to evaluate the disruption risks before designing security into supply chain. A risk evaluation model, which can help mangers to make decision, is proposed. The risks were measured on six criteria and the ranking of the risks was evaluated by the classical TOPSIS method with the traditional one-dimensional sensitivity analysis and a multi-dimensional sensitivity analysis. A numerical case was conducted and the following results were obtained - (1) the risk of disruption in human resource capacity has more possible as an important risk to be settled with. (2) The risk of freight breaches obtains the less possible as an important risk. (3) The risk of disruption in supply shows different degrees of importance in the three kinds of resolutions.