Supply Chain Overall Risk Evaluation Based on Grey Theory and Modified TOPSIS in Fuzzy Environment

Many enterprises have been aware of the severity of risks in supply chains and taken great efforts to supply chain risk management. This paper develops an evaluating index system from the standpoint of the core enterprise in supply chain, and utilizes an evaluation approach based on the modified technique for order performance by similarity to ideal solution (TOPSIS) and grey relational analysis (GRA) in fuzzy environment for supply chain overall risk assessment. In the evaluation process, the paper applies triangular fuzzy numbers to express linguistic variables that consider the subjective judgments of evaluators and applies fuzzy multiple criteria decision-making approach to synthesize the group decision. Furthermore, the paper replaces the Euclidean distance with grey relation coefficient to find a compromise solution, so both the positive ideal solution and negative ideal solution are considered, and the evaluation process ensures the objectivity. Finally, several suggestion and future research are discussed.