Title: Analysing the impact of supply chain risks on the strategic performance of power generation companies: a system dynamics approach

Authors: Sahar Al Mashaqbeh; Jose Eduardo Munive-Hernandez; M. Khurshid Khan

Addresses: Department of Industrial Engineering, Faculty of Engineering, The Hashemite University, Zarqa, Jordan ' Faculty of Engineering and Informatics, University of Bradford, Bradford, UK ' Faculty of Engineering and Informatics, University of Bradford, Bradford, UK

Abstract: The supply chain has a significant impact on the strategic performance of organisations. This paper develops a system dynamics (SD) model to assess the effects of supply chain risks on the performance of power generation companies. Data are collected through a literature review, interviews and questionnaires. The process to build the proposed model involves two phases. An improved failure mode and effect analysis (IFMEA) is applied to identify and understand various risks, and the analytic hierarchy process (AHP) is utilised to calculate the priority of each risk. These priorities are then populated in the SD model. The simulation shows that the performance of power generation companies is significantly affected by the supply chain risks. The availability is significantly affected by 70.75%, followed by the efficiency of 21.75% finally, the operational and maintenance cost is affected by 7.5% for the case study. The developed model helps policy-makers in their decision-making process.

Keywords: supply chains risks; system dynamics modelling and simulation; sensitivity analysis; improved failure mode and effect analysis; IFMEA; analytic hierarchy process; AHP.

DOI: 10.1504/IJBPSCM.2021.10044851

International Journal of Business Performance and Supply Chain Modelling, 2021 Vol.12 No.4, pp.443 - 478

Received: 16 Jan 2021
Accepted: 11 Sep 2021

Published online: 02 Feb 2022 *

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