Supply Chain Risk Mitigation Apple Chips Production Process of Fuzzy Failure Mode and Effect Analysis (Fuzzy FMEA) and Fuzzy Analytical Network Process (Fuzzy ANP)
Lita Budiarti, Panji Deoranto, and Siti Asmaul Mustaniroh

Departement of Agroindustrial Technology, Faculty of Agricultural Technology, Universitas Brawijaya, Malang, Indonesia.
*Litabudiarti.lb[at]gmail.com


Abstract

Consumer demands for competitive product quality are a challenge for apple chip SMEs. Constraints shown include the availability of raw materials, difficulty in providing and meeting consumer demand, and products being damaged during distribution. The purpose of this study is to identify, analyze and determine mitigation strategies in reducing the risk of the apple chips supply chain. The method used for risk identification and analysis is using Fuzzy Failure Mode and Effect Analysis (Fuzzy FMEA) and determining the mitigation strategy using Fuzzy Analytical Network Process (Fuzzy ANP). The research variables used include production, technology, market, human resources (HR), distribution, institutional and financial risks. The results showed that 3 risks were identified with the highest ranking, namely the collector level on the market risk variable, the indicator of price fluctuations with an FRPN value of 5.505. The risk of the highest rating at the SME level is the market variable, an indicator of returns for apple chips because they do not meet market quality with an FRPN value of 6.013. At the distribution level, it has the highest FRPN value of 5.833, distribution variable, an indicator of product damage during the distribution process. There are 4 alternative mitigation strategies, namely optimization of production planning, quality control, distribution process quality management and supply chain performance evaluation. The priority of the overall mitigation strategy in SMEs is quality control (0.354) with the highest weight value.

Keywords: Mitigation Strategy, Risk, Supply Chain

Topic: Agro-industrial production system management and regulation

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