Analysis of supply chain risk mitigation integrated with fuzzy logic, house of risk and AHP (Case study at CV. Multiguna)

Abstract

Risks are potential to be incurred in the supply chain activity.Therefore risk management is indispensable for handling therisk. The research was carried out in the CV. Multiguna in Krikilan, Sariharjo, ngaglik, Sleman, Yogyakarta, 55581. In the process of the supply chain at CV. Multiguna had chances onset of risk.Therefore, it is necessary to identify risks and design mitigation. This research was conducted using fuzzy logic approach, house of risk and AHP. House of risk model consists of two phases. The first phase covers risk identification and risk agents. The calculation of the value of aggregate risk on ARP priority is done by using fuzzy logic approach to measure the severity and occurrence. From the interviews and discussions that resulted in supply chain activity at CV. Multiguna, there are 18 events and 16 identified agent risks and relevant risks. Pareto diagram of the results obtained 5 selected risk agents with ratio of 60:40 in order to focus on risk mitigation actions. After conducting discussions and interviews, it was obtained 10 preventive actions as the input value for house of risk phase 2. The mapping from House of risk phase 2 resulted10 mitigation options, according to the value of ETD (effectiveness to difficulty). Then, the 10 mitigation options are reprocessed using the AHP. AHP is used to determine priorities based on preference of policy's makers with some criteria. From AHP processing, it was obtained the consistency value as 0.09 and this value was considered valid for CR <0.1. Alternative complement negotiation for supporting the infrastructure was elected as the first priority with a value of 0.160, mitigation alternative treatments was followed by the regular machine maintenance with a value of 0.143 and eight other alternatives are ordered from large to small.