Analysis of supply chain risk in the ceramic industry using the TOPSIS method under a fuzzy environment

Purpose: Risk management has emerged as a critical issue in operating a supply chain effectively in the presence of uncertainties that result from unexpected variations. Assessing and managing supply chain risks are receiving significant attention from practitioners and academics. At present, the ceramic industry in Bangladesh is growing. Thus, managers in the industry need to properly assess supply chain risks for mitigation purposes. This study aims to identify and analyze various supply chain risks occurring in a ceramic factory in Bangladesh. Design/methodology/approach: A model is proposed based on a fuzzy technique for order preference using similarity to an ideal solution (fuzzy-TOPSIS) for evaluating supply chain risks. For this, 20 supply chain risk factors were identified through an extensive literature review and while consulting with experts from the ceramic factories. Fuzzy-TOPSIS contributed to the analysis and assessment of those risks. Findings: The results of this research indicate that among the identified 20 supply chain risks, lack of operational quality, lack of material quality and damage to inventory were the major risks for the ceramic sector in Bangladesh. Research limitations/implications: The impact of supply chain risks was not shown in this study and the risks were considered independent. Therefore, research can be continued to address these two factors. Practical implications: The outcome of this research is expected to assist industrial managers and practitioners in the ceramic sector in taking proactive action to minimize supply chain risks. A sensitivity analysis was performed to determine the relative stability of the risks. Originality/value: This study uses survey data to analyze and evaluate the major supply chain risks related to the ceramic sector. An original methodology is provided for identifying and evaluating the major supply chain risks in the ceramic sector of Bangladesh.