Determination of Resilience Strategies and Their Reciprocal Influences in Iran Khodro Supply Chain

Subject Areas : Business Management

Kazem Ravansetan ¹ , Hasanali Aghajani ² , Abdolhamaid Safaei Ghadikolaei ³ , Mahmood Yahyazadehfar ⁴

1 - Ph.D. student, Industrial Management Department, Faculty of Economics and Administration, Mazandaran University, Babolsar, Iran
2 - Associate Professor of Industrial Management, Faculty of Economics and Administration, Mazandaran University, Babolsar, Iran
3 - Associate Professor of Industrial Management, Faculty of Economic Sciences, Mazandaran University, Babolsar, Iran
4 - Professor of Business Administration, Faculty of Economic Sciences, Mazandaran University, Babolsar, Iran

Received: 2017-04-09 Accepted : 2018-06-10 Published : 2019-05-22

Keywords: strategy, resilience, Iran khodro, Restoring,

Abstract :

This research deals with resilient supply chain in Iran Khodro Company. The current study was undertaken with the aim of enhancing the resilience of supply chain against environmental disturbances in Iran Khodro Company. To serve the purpose, a number of strategies were determined that can prevent company’s viable production breakdowns or can instantaneously resume production more adequately after probable breakdowns. The causal relationship among the strategies were also investigated. The population of this research included managers and experts in logistics and planning departments of Sapco Company. Initially, all 12 failure modes that have the potential of breading down the production chain were identified through literature review and expert opinions. Failure Modes and Effects Analysis (FMEA) and Failure Anlayisis after Occurrence (FAAO) were employed to determine supply chain resilience strategies prior to and following failure, respectively. Moreover, the relationships and reciprocal effects among the identified resilience strategies were explored using Dematel technique. Experts determined four high risk failure conditions with the highest Risk Priority Number (RPN); using FMEA techniques, they also identified 21 strategies that could promote resilience in the company’s supply chain as well as six of the most effective strategies using FAAO techniques.

References:

Ambulkar, S., Blackhurst, J., & Grawe, S.(2015). Firm’s Resilience to Supply Chain Disruptions: Scale Development and Empirical Examination.Journal of Operations Management,33&34,111-122.

Azadeh, A., Meydani, N.S., & Haghighi, S.M.(2017). Performance Optimization of an Aluminum Factory in Economic Crisis by Integrated Resilience Engineering and Mathematical Programming. Safety Science, 91, 335-350.

Azevedo, S. A., Machado, V. H., Barroso, A. P., & Cruz-Machado, V. (2008). Supply Chain Vulnerability: Environment Changes and Dependencies. International Journal of Logistics and Transport, 1, 41-55.

Barroso, A.P., Machado, V.H., & Cruz-Machado, V.(2008). A Supply Chain Disturbances Classification. Proceedings of the IEEE International Conference on Industrial Engineering and Engineering Management.

Berle, Ø., Rice Jr., J. B., & Asbjørnslett, B.E.(2011). Failure Modes in the Maritime Transportation System: A Functional Approach to Throughput Vulnerability. Maritime Policy & Management, 38(6), 605-632.

Blackhurst, J., Dunn, K.S., & Craighead, C.W.(2011). An Empirically Derived Framework of Global Supply Resiliency. Journal of Business Logistics, 32(4), 374-391.

Blackhurst, J., Craighead, C. W., Elkins, D., & Handfield, R.B.(2005). An Empirically Derived Agenda of Critical Research Issues for Managing Supply-Chain Disruptions. International Journal of Production Research, 43(19), 4067-4081.

Carvalho, H., Tavares, J. G., & Cruz-Machado, V.(2012). A Mapping Framework for Assessing Supply Chain Resilience. International Journal of Logistics Systems and Management, 12(3), 354-373.

Carvalho, H.(2012). Modelling Resilience in Supply Chain. Faculdade de Ciências e Tecnologia and Universidade Nova de Lisboa.

Carvalho, H., & Cruz-Machado, V.(2011). Integrating Lean, Agile, Resilience and Green Paradigms in Supply Chain Management. Intech Publication.

Chopra, S., & Sodhi, M.S.(2004). Supply-Chain breakdown. MIT Sloan Management Review, 46(1), 53-62.

Christopher, M., & Peck, H.(2004). Building the Resilient Supply Chain. The International Journal of Logistics Management, 15(2), 1-14.

Craighead, C. W., Blackhurst, J., Rungtusanatham, M. J., & Handfield, R.B.(2007). The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities. Decision Sciences, 38(1), 131-156.

Fakoor, A. M., Olfat, L., Feizi, K., & Amiri, M.(2014). A Supply Chain Resilience Model for Competitiveness in Iranian Automobile Manufacturers. Production and Operations Management, 5, 143-164, (In Persian).

Glickman, T. S., & White, S.C.(2006). Security, Visibility and Resilience: The Keys to Mitigating Supply Chain Vulnerabilities. International Journal of Logistics Systems and Management, 2(2), 107-119.

Hanna, J. B., Skipper, J. B., & Hall, D.(2010). Mitigating Supply Chain Disruption: The Importance of Top Management Support to Collaboration and Flexibility. International Journal of Logistics Systems and Management, 6.

Hora, M., & Klassen, R.D.(2013). Learning from others’ Misfortune: Factors Influencing Knowledge Acquisition to Reduce Operational Risk. Journal of Operations Management, 31(1-2), 52-61.

Hsu, C. C., & Liou, J.J.H.(2013). An Outsourcing Provider Decision Model for the Airline Industry. Journal of Air Transport Management 28, 40-46.

Jafarnezhad, A., & Mohseni, M.(2015). Presenting a Framework to Improve Resilience Supply Chain Performance. Iranian Journal of Supply Chain Management, 48, 38-51, (In Persian).

Loh, H. S., & Thai, V.V.(2014). Managing Port-Related Supply Chain Disruptions: A Conceptual Paper. The Asian journal of shipping and logistics, 30, 97-116.

Mason-Jones, R., & Towill, D.(1998). Shrinking the Supply Chain Uncertainty Circle. The Institute of Operations Management Control Journal, 24(7), 17-22.

Matsuo, H.(2015). Implications of the Tohoku earthquake for Toyota’s coordination mechanism: Supply chain disruption of automotive semiconductors. International Journal of Production Economics, 161, 217-227.

Mensah, P., & Merkuryev, Y.(2014). Developing a Resilient Supply Chain. Procedia- Social and Behavioral Sciences, 110, 309-319.

Mitchell, G., & McDonald, A.(2015). Developing Resilience to England's Future Droughts: Time for Cap and Trade?. Journal of Environmental Management, 149, 97-107.

Narasimhan, R., & Talluri, S.(2009). Perspectives on Risk Management in Supply Chains. Journal of Operation Management. 27(2),114-118.

Pettit, T. J., Fiksel, J., & Croxton, K.L.(2010). Ensuring Supply Chain Resilience: Development of a Conceptual Framework. Journal of Business Logistics, 31(1), 1–21.

Ponomarov, S.Y., & Holcomb, M.C.(2009). Understanding the Concept of Supply Chain Resilience. The International Journal of Logistics Management, 20(1), 124-143.

Rajesh, R.(2016). Forecasting Supply Chain Resilience Performance Using Grey Prediction. Electronic Commerce Research and Applications, 20, 42-58.

Rice, J. B., & Caniato, F.(2003). Building a Secure and Resilient Supply Network. Supply Chain Management Review,7(7),22-30.

Sheffi, Y., & Rice, J.B.(2005). A Supply Chain View of the Resilient Enterprise. Sloan Management Review, 47(1), 41-48.

Shu, T., Chen, S., Wang, S., & Lai, K.K.(2014). Gbom-Oriented Management of Production Disruption Risk and Optimization of Supply Chain Construction. Expert Systems with Applications, 41, 59-68.

Soni, U., Jain, V., & Kumar, S.(2014). Measuring Supply Chain Resilience Using a Deterministic Modeling Approach. Computers & Industrial Engineering, 74, 11-25.

Starr, R., Newfrock, J., & Delurey, M.(2003). Enterprise Resilience: Managing Risk in the Networked Economy. Strategy and Business, 30, 70-79.

Svensson, G.(2001). Perceived Trust towards Suppliers and Customers in Supply Chains of the Swedish Automotive Industry. International Journal of Physical Distribution & Logistics Management, 31(9), 647-662.

Svensson, G.A.(2000). Conceptual Framework for the Analysis of Vulnerability in Supply Chains. International Journal of Physical Distribution and Logistics Management, 30(9), 731-749.

Tomlin, B.(2006). On the Value of Mitigation and Contingency Strategies for Managing Supply Chain Disruption Risks. Management Science, 52(5), 639-657.

Torabi, S.A., Baghersad, M., & Mansouri, S.A.(2015). Resilient Supplier Selection and Order Allocation under Operational and Disruption Risks. Transportation Research Part, E 79, 22–48.

Tzeng, G. H., & Huang, J.J.(2011). Multiple Attribute Decision Making Methods and applications. America: CRC PressTaylor & Francis Group.

Vugrin, E., Warren, D., & Ehlen, M.(2011). A Resilience Assessment Framework for Infrastructure and Economic Systems: Quantitative and Qualitative Resilience Analysis of Petrochemical Supply Chains to a Hurricane. Process Safety Progress, 30(3), 280–290.

Wu, H. H., Shieh, J. I., Li, Y., & Chen, H. L.(2010). A Combination of AHP and Dematel in Evaluating the Criteria of Employment Service Outreach Program Personnel. Information Technology Journal, 9(3), 569-575.

Wu, W.(2008). Choosing Knowledge Management Strategies by Using a Combined ANP and Dematel Approach. Expert Systems with Applications, 35(3), 828-835.