An Improved FMEA for Supplier Risk Assessment

Abstract:

This paper proposes an improved failure mode and effects analysis(FMEA) method based on hesitant fuzzy sets and grey relational theory for supplier risk assessment. First, the potential risks of suppliers were identified and then experts evaluated these risks using hesitation fuzzy linguistic terms on the basis of their preferences. Next, the sematic-based computation method and the rough set idea were used to translate the assessment information into intervalvalued numbers. Finally, it considered the relative importance of O, S, D when using grey relational theory to determine the risk priority. The case study shows that the method could help companies identify the main risks of cooperating suppliers, as well as provide support for managers to formulate risk management and control strategies.