Title: Modelling and analysis of supply chain risks in leather industry

Authors: Sundarabaskar Hariharan; Rajmohan Murugesan; A.G. Mahalakshmi

Addresses: Department of Industrial Engineering, CEG Campus, Anna University, Chennai – 600025, India ' Department of Industrial Engineering, CEG Campus, Anna University, Chennai – 600025, India ' Department of Industrial Engineering, CEG Campus, Anna University, Chennai – 600025, India; Clovestor Solutions No. 116, SLS serenity apartments, Kadubheesnahalli, Bangalore 560103, India

Abstract: Due to globalised marketing, supply chain of leather industries in India are now facing variety of risks. Hence, modelling and analysis of supply chain risk becomes paramount important. In this article, the major risks that affect the supply chain performance of leather industries in India were identified through systematic literature review and experts opinion. These risks are grouped using exploratory factor analysis (EFA) and the grouped risks are confirmed using confirmatory factor analysis (CFA). Structural equation modelling (SEM) was created and analysed. It is found that demand risks influence the operation risk with high impact. This analysis helps in understanding the relationship and the impact of each risk with other risks which in turn very much helpful in developing guidelines for managerial decision making process to mitigate supply chain risks.

Keywords: supply chain; risk management; exploratory factor analysis; EFA; confirmatory factor analysis; CFA; structural equation modelling; SEM.

DOI: 10.1504/IJMTM.2019.103310

International Journal of Manufacturing Technology and Management, 2019 Vol.33 No.5, pp.329 - 341

Accepted: 21 May 2019
Published online: 23 Oct 2019 *

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