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Order allocation for supplier is an important decision for an enterprise to realize a sustainable production. It was related to the suppliers function as a raw material provider and other supporting materials that will be used in production process. Initially most of previous research only focus on system analysis of order allocation supplier without doing analysis of risk and overall supply chain cost. Problem encountered in this research is to determine shifting order among suppliers that considering risk and transportation cost for single commodity multi supplier. The supply chain risk management process is investigated and a procedure was proposed in the risk mitigation phase as a form of risk profile. In this research model is proposed an initial procurement plan by using linear programming and also is revised the first optimal solution by including the risk profile factor. The objective of analysis risk profile in order allocation is to maximize the product flow from a risky supplier to a relatively less risky supplier. This supply chain risk management procedure including this proposed procedure is applied to a sugar company. The model is able to demonstrate that the result are different than the initial model.The result suggested that order allocations should be maximized in suppliers that have a relatively less risk profile value and minimized on suppliers that have a relatively larger risk profile value based on the risk factor, capacity, purchasing cost, transportation cost for each supplier and also demand from each manufacturer.   Keywords : Shifting Order, Multiple Sourcing, Supply Side Risk, LinierProgramming.

Shifting orders among suppliers considering risk, price and transportation cost