Decision Support Model for Ranking Risk Management Approaches

• In Event: SUPPLY-CHAIN RISK and RESILIENCY: Decision Making in Supply Chain Risk Management

Abstract

In response to the increasing frequency and severity of climate-related disruptions, supply chain managers can no longer rely solely on accepting a risk or transferring the risk through insurance. Decision makers must consider two alternative approaches by investing in either risk mitigation or risk avoidance. This presentation explores the integration of the analytical hierarchy process method with a color-coded decision aid that quantifies their utility function, and is consistent with the decision tree of the four alternative decisions (acceptance, transfer, mitigation, or avoidance).The proposed methodology results in a ranking of the four options with weights representing their respective preferences.

Authors

• Zhilin Liu, Boston University

• Hanyi Zheng, Boston University

• Jingyi Wu, Boston University

• John Maleyeff, Boston University