ISSN : 1796-203X
Volume : 3    Issue : 10    Date : October 2008

Research on Risk Evaluation in Supply Chain Based on Grey Relational Method
Peide Liu and Tongjuan Wang
Page(s): 28-35
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Supply chain risk evaluation is a multi-criteria decision making problem under fuzzy environments.
To tackle the problem, this paper firstly identifies and discusses some of the important and critical
decision criteria and constructs the evaluation indicator framework. Then this paper presents a
modified grey relational analysis method based on the concepts of ideal and anti-ideal points. In the
method, the weight information is partially known and the vagueness and subjectivity are handled
with linguistic terms parameterized by triangular fuzzy numbers. Besides, a single objective
programming model is developed to determine the relation degree between every alternative and
positive ideal point or negative ideal point. By solving the programming model, the weight vector of
criteria is calculated. The alternatives are ranked by the relative relation degree. Finally, a case study
is given to demonstrate the proposed method’s effectiveness.

Index Terms
supply chain, risk evaluation, multi-criteria decision making, grey relational analysis