Risk mitigation strategy of rice seed supply chains using fuzzy-FMEA and fuzzy-AHP (Case study: PT. XYZ)

Abstract

Every supply chain activity is always related to risk. Indonesia is an agricultural country as well as a rice seed producer. In rice seed supply chain activities, there are still some problems, namely the unstable amount of consumer demand, product competition, and delays in receiving raw materials. The purpose of this study was to determine the priority level of risk in the rice seed supply chain, and also determine alternative of risk mitigation strategies. The method used was Fuzzy Failure Mode and Effect Analysis (FMEA) and Fuzzy Analytical Hierarchy Process (AHP). This study used an expert survey with 4 respondents consisting of 2 people from the manufacture level (manager and assistant production manager) and 2 people from farmer level (as supplier). There were 14 risks identified from the manufacture level and from the farmer level. Based on the results of calculations with the fuzzy FMEA method, the manufacture level obtained the highest risk result, namely the risk of competition in rice seed products with a Fuzzy Risk Priority Number (FRPN) with value of 7.019. For farmer level, the highest risk was the high competition with other farmers with FRPN 7.812. 80% of critical risks from manufacturing and farmer level were analyzed using fuzzy AHP to determine priority of risk mitigation strategies. Alternative strategies for manufacture level were production planning and inventory control and machine maintenance. Alternative strategies for farmer level were improving information access, maintain quality, and production planning and inventory control.