Risk evaluation of warehouse operations by using FMEA and combined AHP-Topsis approaches under fuzzy environment

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International Journal of Development Research

Risk evaluation of warehouse operations by using FMEA and combined AHP-Topsis approaches under fuzzy environment

Abstract: 

In this study, we investigate the effects of supply chain operations and supply chain risks on supply chain performance. Operationally, warehouse processes contain various risks which lead to a poor supply chain performance. In order to avoid supply chain breakdown, risk analysis in warehouse operations is a challenging task to enhance both the supply chain efficiency and the customer satisfaction. In this context, failure mode and effects analysis (FMEA) is a useful risk assessment tool and therefore, this study is a novel approach towards risk evaluation of warehouse operations. In traditional (FMEA) the risk priorities of failure modes are determined by using crisp risk priority number (RPN), which has been criticized due to several limitations. In this article a fuzzy multi-criteria group decision making (MCGDM) approach, allowing a group of experts to use linguistic variables for identifying three risk factors namely; severity (S), occurrence (O), and detection (D), is considered for FMEA by applying fuzzy technique for order performance by similarity to ideal solution (TOPSIS) integrated with fuzzy analytical hierarchy process (AHP) in the food retail chain. Finally, a case study which evaluates the risk of warehouse process is presented with sensitivity analysis to demonstrate the application of the proposed model effectively under fuzzy environment.

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