Risk management on supply chain network: A supply side decision support system design

In this thesis, it is intended to develop a decision support system for supply chain risk management (SCRM) based on cost/risk netting. In this manner, by ensuring the continuity of the SC, It is developed a decision support system that aims not only to take into account only the cost, but to evaluate possible risks on the distribution network that ranges from suppliers to production facilities, so that more realistic decisions about stock planning can be made and continuity can be maintained. In this framework, to lessen SC risks, risk profiles of suppliers, risks of distribution channels and total costs will be examined in a hierarchical manner, and it will be ensured that the producer is affected less in the case of a possible interruption. While evaluating the risk of suppliers and the network that links the suppliers to the production facilities, it is intended that the most supply flows through the distribution channel with the least cost and risk, and that the decision maker has the opportunity to choose from the alternatives by means of risk and total cost netting. The proposed decision support system as a result of the study is transformed into a software that is able to identify specific risks about user's own problem field, taking into account the opinions of a desired number of decision makers between a desired number of suppliers and a desired number of production centers; and is able to produce optimal or near-optimal results in a short span of time. In this way, by using a recommended decision support system in planning and as a result of a supply plan revised according to the risk, the degree of exposure to interruption due to suppliers or distribution channels will be minimized. Consequently, to the best our knowledge, in this thesis, the first methodology and the first software in literature that evaluates all SCRM processes has been developed.