Loss Severity Evaluation Using Grey Relational Analysis: A Case Study of Natural Disasters in Taiwan

Taiwan is affected by three primary types of natural disaster: typhoons, earthquakes, and floods. Natural disasters in Taiwan can cause human causalities and loss of housing. Therefore, a method for evaluating the severity of losses caused by natural disasters would be beneficial for disaster management institutes in Taiwan when developing further supply chain management (SCM) strategies. To evaluate loss severity resulted from natural disasters in Taiwan, this study adopted grey relational analysis (GRA) to develop a method for evaluating the severity of losses caused by typhoons, earthquakes, and floods based on four indicators: human casualties, loss of housing, disaster relief personnel, and disaster relief equipment. According to the study results, the proposed GRA method is appropriate for evaluating the severity of losses caused by typhoons, earthquakes, and floods. The proposed GRA method is effective for evaluating the severity of loss resulting from natural disasters in Taiwan, which can serve as a reference for disaster management institutes to develop supply strategies in the future.