Designing Sustainable Supply Chain Risk Monitoring in Distribution and Return Process Using Fuzzy AHP-Promethee

Abstract

The increase in the tanning industry in Indonesia can lead to an increase in environmental damage due to waste as well as from the resources used. Therefore, the leather tanning industry needs to implement aspects of sustainable supply chain management (SSCM). In application of SSCM in company, a risk can arise. The purpose of this study is to design a risk monitoring system in the SSCM system based on SCOR model. SCOR model is used as a reference in identifying risks. The method used is Fuzzy AHP to determine the priority of the risk, then the Promethee method to weigh the mitigation strategy of the risks that exist in the SSCM system. The results of risk identification found 22 potential risks in the distribution and return process. For risk mitigation strategies, there are 13 alternatives that can be applied to prevent the occurrence of these risks.