Risk and cost assessment in supply chain decision making : Developing a tool with analytical hierarchy methodology

Sammanfattning: This study aims to describe how a tool can be developed by assessing risk and cost within the supply chain of a company. By interviewing stakeholders of the chosen case company, and later analysing their answers with the help of a thematic analysis, we were able to isolate the risk criteria seen as significant. Quality, people, delivery, cost-variation, flexibility and information risk were then used in an AHP model, together with the addition of a cost criterion. By using the AHP methodology, we were able to establish the relation between risk and cost, the different risk criteria and the different product flows considered. The AHP resulted in a matrix which presents the internal relations which can be used as a tool when choosing between different product flows. The purpose of this tool is to help mitigate some of the uncertainties that can emerge when making decisions within the supply chain. The data used in this study is based on the input of the case company, the general application of the matrix have therefore not been tested.