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Integrated Model for Soft Drink Industry Supply Chain Risk Assessment: Implications for Sustainability in Emerging Economies

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Abstract

Recently, the soft drink industry has been confronted with a rapidly changing business climate and increased competition, creating risks and uncertainties in its supply chain. Thus, immediate actions are required to handle these risks and uncertainties. The purpose of this paper is to identify and classify these risks in the soft drink supply chain and to develop a methodology comprising a fuzzy analytical hierarchy process (FAHP) and fuzzy comprehensive evaluation of these risks. FAHP was used to determine the weights of five major risk categories and 23 sub risks under these major categories. Afterward, a fuzzy comprehensive evaluation method (FCEM) was applied for the assessment of overall risk level, risk levels of the five major categories and relative risk levels of the 23 sub risks. This research has been conducted focusing on the soft drink industry of Bangladesh, a developing country with an emerging economy. In the existing literature, this work contributes by identifying and evaluating risks in the soft drink supply chain in the context of Bangladesh. The outcome of this study indicates that the overall risk level in the supply chain of the soft drink industry is between low and medium, and the risk level of the demand risks is the highest whereas the risk level of infrastructural risks is the lowest. It was also found that loss of reputation and brand image is the most significant sub risk, and natural disasters are the least significant sub risk.

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Acknowledgements

This research was undertaken at the Bangladesh University of Engineering and Technology (BUET). The authors acknowledge the supports received from the Department of Industrial and Production Engineering of BUET to conduct this research successfully. The fifth author acknowledge the financial support through Natural Science Engineering Research Council Canada Discovery Grant Program (RGPIN-2019-04704) for professional editing, proofreading, and article processing fees.

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Authors and Affiliations

  1. Department of Industrial and Production Engineering, Bangladesh University of Engineering and Technology, Dhaka, 1000, Bangladesh

    Ahmed Shoyeb Raihan, Syed Mithun Ali, Sanjeeb Roy & Miki Das

  2. Industrial Systems Engineering, Faculty of Engineering and Applied Science, University of Regina, Regina, SK, S4S 0A2, Canada

    Golam Kabir

  3. UTS Business School, University of Technology Sydney, Sydney, Australia

    Sanjoy Kumar Paul

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  1. Ahmed Shoyeb Raihan
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Correspondence to Golam Kabir.

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Raihan, A.S., Ali, S.M., Roy, S. et al. Integrated Model for Soft Drink Industry Supply Chain Risk Assessment: Implications for Sustainability in Emerging Economies. Int. J. Fuzzy Syst. 24, 1148–1169 (2022). https://doi.org/10.1007/s40815-020-01039-w

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