Open AccessRisk Management Analysis Using FMECA and ANP Methods in the Supply Chain of Wooden Toy Industry
Author(s) -
W. N. Tanjung,
S. A. Atikah,
Syarif Hidayat,
Endang Ripmiatin,
S. S. Asti,
Ratu Siti Khodijah
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/528/1/012007
Subject(s) - failure mode, effects, and criticality analysis , supply chain risk management , supply chain , risk management , risk analysis (engineering) , business , order (exchange) , failure mode and effects analysis , supply chain management , analytic network process , risk assessment , process (computing) , operations management , computer science , service management , finance , operations research , engineering , reliability engineering , marketing , analytic hierarchy process , computer security , operating system
Risk is a factor that has a potential to occur in every part of an industry, including its supply chain. Every industry must consider and manage its supply chain risks in order to minimize losses while improving performance. In this study, a supply chain risk management (SCRM) approach was conducted in the supply chain of wooden toy industry as a way to minimize the impact of risk. In this case, SCRM method is done by identifying risks, assessing risks using the failure mode effect criticality analysis (FMECA) method to determine the risk priorities that must be mitigated, and establish strategies to mitigate the risk with analytical network process (ANP) method. Thus, the risk priority in the wooden toy industry’s supply chain is the cost/price risk with the highest WRPN value of 33,379. In order to mitigate the cost/price risk, conducting strategic accounting practices and financial planning are recommended to be considered as its strategies.