Open AccessRisk Mitigation Analysis in a Supply Chain of Coffee Using House of Risk Method
Author(s) -
Bambang Herry Purnomo,
Bertung Suryadharma,
Ridha Ghaniy Al-hakim
Publication year - 2021
Publication title -
industria
Language(s) - English
Resource type - Journals
eISSN - 2549-3892
pISSN - 2252-7877
DOI - 10.21776/ub.industria.2021.010.02.3
Subject(s) - business , supply chain , risk management , quality (philosophy) , government (linguistics) , risk analysis (engineering) , operations management , java , environmental economics , marketing , finance , computer science , engineering , economics , philosophy , linguistics , epistemology , programming language
Perusahaan Daerah Perkebeunan (PDP) Kahyangan Jember in East Java is a regional company owned by The Jember Regency Government that is engaged in the plantation business. PDP Kahyangan Jember implements supply chain management in its business, however there are still some problems in its implementation and management. Some of the issues are the quantity of ground coffee production that does not meet the targeted quantity, decreased coffee beans quality, and reduced coffee yields. These problems can be reduced using a risk management approach. This study aimed to identify the activities of the ground coffee supply chain in PDP Kahyangan Jember and its risks, to determine the level of the risks, and to develop a risk management strategy for PDP Kahyangan Jember ground coffee supply chain. This study used the House of Risk (HOR) method which consists of two phases, i.e. HOR 1 and HOR 2. HOR 1 is used to identify risks in the supply chain. HOR 2 is used to develop a strategy for handling these risks. The HOR 1 analysis results show there are 28 risk events and 33 risk sources, with 15 priority risk sources being considered in the risk management strategies preparation. The results of HOR 2 analysis show eight priority management strategies that can be implemented by PDP Kahyangan Jember.