Identification and risk mitigation strategy of cocoa commodities supply chain using fuzzy house of risk method (Fuzzy-HOR)

  • Authors

    • Imam Santoso Universitas Brawijaya
    • Noval Nazwanuril Wafi Universitas Brawijaya
    2019-08-25
    https://doi.org/10.14419/ijet.v8i3.28210
  • Cocoa, Fuzzy-HOR, Risk Mitigation, Supply Chain.

  • Abstract

    Supply Chain Management should be considered in a business entity as it relates to the process of managing the flow of goods from upstream to downstream. The supply chain process involves multiple parties, in which each of the parties involved may pose a supply chain risk so that supply chain risk management is required to manage supply chain activities. PT. XYZ as the research place is located in Blitar, East Java which is one of the business entities engaged in cocoa commodities. Currently, PT. XYZ has not had a structured supply chain risk management yet to identify and mitigate risks. This study aims to identify supply chain risk and determine risk mitigation strategies that need to be applied. The method used was Fuzzy-HOR. This study involved expert respondents consisting of cocoa farmers and employees (production managers and operational managers). The result of risk identification found 11 risks on farmer’s activity which was composed of 15 risk agents. Next, 19 risks were found on company’s activity which was consisted of 25 risk agents. Calculation results using Fuzzy-HOR on phase 1 resulted in 9 risk agents on farmer’s activity and 18 risk agents on company’s activity that required mitigation strategies design. In Fuzzy-HOR phase 2, there were 17 farmer’s mitigation strategies and 30 company’s mitigation strategies.

     

     

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  • How to Cite

    Santoso, I., & Nazwanuril Wafi, N. (2019). Identification and risk mitigation strategy of cocoa commodities supply chain using fuzzy house of risk method (Fuzzy-HOR). International Journal of Engineering & Technology, 8(3), 216-222. https://doi.org/10.14419/ijet.v8i3.28210

    Received date: 2019-03-05

    Accepted date: 2019-06-12

    Published date: 2019-08-25