Management Journals | Operations Management

The IUP Journal of Operations Management

Risk Mitigation Using Interpretive Structural Modeling in Fertilizer Supply Chain

Article Details

Pub. Date	: Aug, 2023
Product Name	: The IUP Journal of Operations Management
Product Type	: Article
Product Code	: IJOM040823
Author Name	: Mavoothu D and Priya S
Availability	: YES
Subject/Domain	: Management
Download Format	: PDF Format
No. of Pages	: 08

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Abstract

Supply chains are the lifeline of businesses and economies. Today, with increased globalization and outsourcing, supply chains have become prone to many risks. The management of supply chain risks is a major area of research. It is important to understand the various risks inherent in a supply chain and the interactions between them before trying to manage/mitigate them. This paper seeks to understand the risks inherent in a fertilizer supply chain and model the risks using interpretive structural modeling. The dependence power and driving power of each risk is also calculated.

Introduction

The Indian fertilizer market is segmented by product (nitrogenous, phosphatic, potash, complex, secondary nutrient, and micronutrient fertilizers) and application (grains and cereals, pulses and oilseeds, commercial crops, fruits and vegetables, etc.). Once the central government exempted this sector from lockdown restrictions, the impact of the Covid-19 pandemic was lessened, but the sector faced challenges in terms of shortage of labor and raw materials. India is the second-largest consumer of fertilizers in the world. Hence, it becomes important to understand the risks involved in the fertilizer supply chain.

The greater uncertainties in supply and demand, increasing globalization of the market, shorter product and technology life cycles, and increased use of manufacturing, distribution and logistics partners have led to increased exposure to risks in the supply chain (Diabat et al., 2012). Wagner and Bode (2008) commented that an unstable world had come about with sensitive supply chains. Today, supply chain risk has become a major research area as the exposure to risks has increased in supply chains