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Enterprise Risk Assessment of Agricultural Supply Chain Based on CRITIC- Entropy Weight -VIKOR Model

Xiaodong Lou
College of Digital Commerce Zhejiang Business Technology Institute 315012, Ningbo Zhejiang, P. R. China

Abstract: Agriculture is the primary industry which plays a foundational role in our national economy. It is the most essential material production department. Agricultural supply chain management can ensure the safety of food production, protect the rights and interests of consumers, improve the operational efficiency of the agricultural supply chain, and increase the income of agricultural enterprises and farmers. Therefore, the key link of agricultural supply chain risk management is identifying and evaluating the risk. To improve the scientific merit and accuracy of enterprise risk assessment in the agricultural supply chain, this study constructed a risk assessment model integrating CRITIC, entropy weight and VIKOR method. It proposed five firstlevel indexes, including policy environment risk, market environment risk, policy adjustment risk, consumer demand change risk and natural change risk. Based on the index system, composed of 17 secondary indexes, the risk index weights of agricultural supply chain enterprises were determined jointly by the CRITIC and entropy weight methods. VIKOR method was used to carry out a risk assessment on 15 agricultural supply chain enterprises in an agricultural economic development zone. The results show that the evaluation index system of enterprise risk of agricultural supply chain proposed in this study is more scientific and reasonable. The CRITIC indicators of X-1-1, X-5-1, and X-5-2 have the largest weight. The entropy weight of X-5-1, X-5-2 and X-1-2 is the largest. The critical-entropy weight-VIKOR model can effectively distinguish the risk degree of different agricultural supply chain enterprises and provide decision support for enterprises to formulate targeted risk management countermeasures. The research results of this study are of great value for the scientific and accurate risk assessment of enterprises in the high agricultural supply chain, improving the effectiveness of risk management, enriching the methods and tools of risk assessment research in the agricultural supply chain, and realizing the safe and stable operation of the agricultural supply chain.

Keywords: CRITIC, Entropy Weight, VIKOR, Agricultural Supply Chain, Enterprise Risk, Risk Assessment Enterprise Risk Assessment of Agricultural Supply Chain Based on CRITIC- Entropy Weight -VIKOR Model

DOI:https://doi.org/10.6025/jisr/2024/15/1/11-22

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