Integration house of risk and analytical network process for supply chain risk mitigation of cassava opak chips industry

¹ Majoring in Industrial Engineering Universitas Sultan Ageng Tirtayasa, Jendral Sudirman Km. 3 Cilegon, 42435, Indonesia

^a Corresponding author: Nurul.ummi@untirta.ac.id

Abstract

Supply chain risk is difficult to predict and cause losses that will affect business growth. Supply chain management is a method used for risk control by being used in the cassava industry supply chain. This objective is to determine the risks that will occur and potentially disrupt the supply chain, to determine the risk agent sequence from the Aggregate Risk Potential (ARP) score, and to determine priority mitigation actions. This study uses integration methods. (HOR), and Analytic Network Process (ANP) with pareto diagrams and method-based ratings. The SCOR method is used to map supply chain activities and classify supply chain activities. Meanwhile, the HOR method is used in identifying risk events and risk agents, as well as assessments based on the assessment of the FMEA method. The output of the HOR method is the ARP score used for the priority of the risk agent. Pareto diagrams are used in the priority of risk agents that must be immediately addressed based on the ARP score. The ANP method is used to determine the priority of mitigation actions. Based on this study, researchers obtained 21 risk events and 30 risk agents with 17 risk agents including priority risk agents and 13 non-priority risk agents, and 10 mitigation measures.