Risk Evaluation of Warehouse Operations Using Fuzzy FMEA

Abstract

Warehouse processes in supply chain operations contain risks which lead to a poor supply chain performance. Therefore, risk analysis in warehouse operations is a critical issue to increase both the supply chain efficiency and the customer service level. In this study, fuzzy FMEA method is used to evaluate the risks of warehouse operations. Ten failure factors are determined for warehouse operations of a food retail distributor. As the first five cause permanent shrinkage of products, the second five are related to the processes. According to the evaluations of the FMEA team members, fuzzy and crisp risk priority numbers (RPN) of ten failure factors are determined.