Decision Support for Supply Chain Risk Management in Automotive Industry

Abstract

This study aimed to identify the types of risks that arise in the automotive industry supply chain. Due to the increase in production volume today, there are many problems in the quality of the auto parts from the substandard production, which are consequently followed by many risks. Currently, there are many accident-related deaths each year around the world and most accidents are caused by cars that are produced without analyzing the risks in the supply chain. Moreover, the domestic automotive parts companies themselves are not yet aware which factors can affect the risks at most. Therefore, this research aimed to understand the risk factors in the automotive supply chain in order to contribute to the development of guidelines on various aspects of decisions. In general, the risks consist of internal and external risks, including the impact of economics, natural disasters, terrorism, or even the risks of production. This research was conducted by questionnaire and interview data obtained from automotive parts manufacturers in Thailand, a total of 170 people and experts in the automotive parts industry. The statistical analysis was performed using SPSS and the level of risks was determined by calculating the probability of occurrence and severity of risk factors. The results showed that the types of risks that arise in the automotive supply chain in a very high level (E-Extreme risk) that must be urgently resolved are the risk factors of production technology and the risk factors of quality control. These can be defined as decision-making guidelines for managing the risks in the automotive industry supply chain for the risks of production technology.

Keywords: Supply chain risk management, Decision-making, Automotive industry