Open AccessSupply Chain Risk Management on Wooden Toys Industries by using House of Risk (HOR) and Analytical Network Process (ANP) Method
Author(s) -
W N Tanjung,
Ratu Siti Khodijah,
Syarif Hidayat,
Endang Ripmiatin,
S. A. Atikah,
S. S. Asti
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/528/1/012086
Subject(s) - risk management , risk analysis (engineering) , supply chain risk management , business , financial risk , process (computing) , supply chain , risk assessment , financial risk management , operations management , analytic network process , risk management tools , supply chain management , actuarial science , computer science , finance , economics , operations research , engineering , marketing , service management , computer security , analytic hierarchy process , operating system
Good risk management will reduce the impact and risk of an event. In this study discussed the risks that may arise in the wooden toy industry supply chain and how to manage these risks. The calculation divided into three phases; there are risk mapping, risk assessment, and risk management. House of Risk (HOR) is used in calculating potential risks and Analytical Network Process (ANP) is used to choose the best strategy for supply chain risk management. Followed by HOR calculation, risk that has the greatest value and selected as potential risk is the risk of price/cost fluctuations with an ARP value of 432. The strategy of this risk is grouped based on 2 causes, namely raw material price fluctuations and poor management. With ANP calculations, the strategy for raw material price fluctuations are understanding and determining the quantity of material used (28.14%) and combining woods with various commodities (23.23%). Then the alternative for poor management are doing strategic financial accounting (54.48%) and doing financial planning (33.07%).