A Novel Two-Stage Algorithm for Assessing System Reliability of a Multistate Sustainable Supply Chain

Abstract

With the adoption of the United Nations’ Sustainable Development Goals, the focus on improving supply chain sustainability and proper order distribution has become a critical problem. This study proposes a novel two-stage algorithm that involves supplier sustainability to assess the system reliability of a supply chain. System reliability, which gauges the probability of the supply chain successfully delivering a designated amount of goods to the market while considering supplier sustainability and production capacity, is an essential performance indicator used to evaluate supply chain capability and allocate orders. We establish a multistate sustainable supply chain network, where each node symbolizes a market, assembler, warehouse, or supplier, and each connecting edge signifies a carrier. The proposed two-stage algorithm first integrates a Z-number-based indifference threshold-based attribute ratio analysis (called Z-ITARA) and the reference ideal method (called Z-RIM) to assess supplier and order allocation sustainability. Afterward, sensitivity analysis is adopted to assign the flow pattern, and the changes in system reliability are observed. To demonstrate the effectiveness of the proposed algorithm, a real case of an audio corporation between China and Taiwan is studied.