Identification and evaluation of risks in supply chain of milk (a case study)

The purpose of the present research was to identify and analyse the potential risks in the milk supply chain network by using the failure mode, effects and critical analysis approach during 2016 until 2018. The criteria of severity, the probability of occurrence and the severity of the diagnosis were used to assess these risks. The research findings showed that the most important risks belong to sub-systems of ranchers and then milk processing factories. Main risks were prioritised and addressed as there is a need to focus and employ different risk management strategies to improve the performance of the chain. Government policies fluctuations related to producers was determined as the most important negative risks of the whole chain. Potential impacts of main risks have been identified in the form of impact on costs, quality, and production. Seasonal fluctuations in supply and demand, the elimination of production subsidies, the ineffectiveness of the pricing, and the dependence of production on subsidised government were the potential causes of the main risks in the studied chain.