Development of Supply Chain Risk Mitigation to Develop an Effective Strategy for Small and Medium Enterprises
DOI:
https://doi.org/10.31098/lomr.v3i1.1553Keywords:
Supply Chain Risk; Small and Medium Enterprises; Risk Mitigation; Strategy; Failure Mode and Effect AnalysisAbstract
Supply chain risk management is the process of detecting, analyzing, and managing risks associated with a company’s supply chain. Risk reduction is implemented throughout the supply chain of SME that manufacture character pillows, doormats, floor mattresses, and scouring pads. This company's supply chain has various issues, including variations in client demand, volatility in the number of products produced, and the company's failure to effectively oversee the supply chain, which results in decreased quality and decreased customer satisfaction. The goal of this study is to use the Failure Mode and Effect Analysis (FMEA) approach to mitigate supply chain risk and develop solutions to minimize or eliminate supply chain risk with the highest RPN and risk score. The risk mitigation approach was employed in this study, with three stages: risk identification, evaluation, and risk analysis, as well as establishing a risk mitigation strategy. The FMEA approach of risk mitigation yielded the three highest RPN (Risk Priority Number) values of the 31 supply chain concerns. These three dangers are inaccuracies in the number of products produced, consumer complaints against companies, and rapid changes in production orders. Our findings theoretically highlight the risks that arise in SME supply chain operations, such as planning, sourcing, manufacturing, delivery, and return. Meanwhile, organizations can use the research findings to coordinate their supply chain plans.
References
Aldimas, M. H., Mahbubah, N., & Dhartikasari, E. (2021). Mitigasi Risiko Rantai Pasokan Pemeliharaan Ikan Hias Koi Menggunakan Metode House of Risk. RADIAL: Jurnal Peradaban Sains, Rekayasa dan Teknologi, 9(1), 53-65. https://doi.org/10.37971/radial.v9i1.220.
Bowles, J. B., & Peláez, C. E. (1995). Fuzzy logic prioritization of failures in a system failure mode, effects and criticality analysis. Reliability engineering & system safety, 50(2), 203-213. https://doi.org/10.1016/0951-8320(95)00068-D.
Broadleaf Capital International. (2007). Risk Management Standard, AS/NZS 4360: 2004.
Ceylan, B. O., Akyar, D. A., & Celik, M. S. (2023). A novel FMEA approach for risk assessment of air pollution from ships. Marine Policy, 150, 105536. https://doi.org/10.1016/j.marpol.2023.105536.
Chopra, S., & Sodhi, M. S. (2004). Managing risk to avoid supply-chain breakdown. MIT Sloan management review.
Handayani, D. I. (2014). Risiko rantai pasok minuman sari apel dalam perspektif sistem traceability. J@ ti Undip: Jurnal Teknik Industri, 9(1), 57-68. https://doi.org/10.12777/jati.9.1.57-68.
Handayani, D. I. (2016). A review: potensi risiko pada supply chain risk management. Spektrum industri, 14(1), 25.
Jüttner, U., Peck, H., & Christopher, M. (2003). Supply chain risk management: outlining an agenda for future research. International Journal of Logistics: research and applications, 6(4), 197-210.
Marimin, Djatna T, Suharjito, Hidayat S, Utama N. D, Astuti R, Martini S. 2013. Teknik dan Analisis Pegambilan Keputusan Fuzzy Dalam Manajemen Rantai Pasok. PT Penerbit IPB Press: Bogor
Pratama, R., & Basuki, M. (2022). Mitigasi Risiko K3 Pada Pekerjaan Pemeliharaan Dan Perbaikan Di Area Kamar Mesin Kapal General Cargo Menggunakan Metode Failure Mode and Effect Analysis. Jurnal Sumberdaya Bumi Berkelanjutan (SEMITAN), 1(1), 100-109. https://doi.org/10.31284/j.semitan.2022.3011.
Ritchie, B., & Brindley, C. (2004). Risk characteristics of the supply chain-A contingency framework. Supply chain risk, 28-42.
Tang, C. S. (2006). Perspectives in supply chain risk management. International journal of production economics, 103(2), 451-488. https://doi.org/10.1016/j.ijpe.2005.12.006.
Ulfah, M. (2020). Mitigasi risiko rantai pasok produk donat menggunakan metode house of risk di UMKM Nicesy. Journal Industrial Servicess, 6(1), 49-54. https://doi.org/10.36055/jiss.v6i1.9474.
Downloads
Article Metrics
- 0 times
- 0 times
Published
Citation Check
How to Cite
Issue
Section
License
Copyright (c) 2024 Henni Henni , Diah Pramestari, Dwi Dinariana, Fitri Suryani, Siti Sujatini, Al Ikbal Arby
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Content Licensing, Copyright, and Permissions
1. License
Logistic and Operation Management Review (LOMR) has CC-BY NC or an equivalent license as the optimal license for the publication, distribution, use, and reuse of scholarly work for non-commercial purposes. The non-commercial use of the article will be governed by the Creative Commons Attribution license as currently displayed on Creative Commons Attribution-NonCommercial 4.0 International License
Creative Commons License
2. Author’s Warranties
The author warrants that the article is original, written by stated author(s), has not been published before, contains no unlawful statements, does not infringe the rights of others, is subject to copyright that is vested exclusively in the author and free of any third party rights, and that any necessary written permissions to quote from other sources have been obtained by the author(s).
3. User Rights
Logistic and Operation Management Review (LOMR) objective is to disseminate articles published are as free as possible. Under the Creative Commons license, this journal permits users to copy, distribute, display, and perform the work for non-commercial purposes only. Users will also need to attribute authors and this journal on distributing works in the journal.
4. Rights of Authors
Authors retain the following rights:
Copyright, and proprietary rights relating to the article, such as patent rights,
The right to use the substance of the article in future own works, including lectures and books, The right to reproduce the article for own purposes, The right to self-archive the article, the right to enter into separate, additional contractual arrangements for the non-exclusive distribution of the article's published version (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal (Logistic and Operation Management Review (LOMR).
The author has a non-exclusive publishing contract with a publisher and the work is published with a more restrictive license, the author retains all the rights to publish the work elsewhere, including commercially, because she/he is not subject to the conditions of her / his own license, regardless of the type of CC license chosen.
5. Co-Authorship
If the article was jointly prepared by other authors, the signatory of this form warrants that he/she has been authorized by all co-authors to sign this agreement on their behalf, and agrees to inform his/her co-authors of the terms of this agreement.
6. Termination
This agreement can be terminated by the author or Logistic and Operation Management Review (LOMR) two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of Logistic and Operation Management Review (LOMR).
7. Royalties
This agreement entitles the author to no royalties or other fees. To such extent as legally permissible, the author waives his or her right to collect royalties relative to the article in respect of any use of the article by This agreement can be terminated by the author or Logistic and Operation Management Review (LOMR) upon two months’ notice where the other party has materially breached this agreement and failed to remedy such breach within a month of being given the terminating party’s notice requesting such breach to be remedied. No breach or violation of this agreement will cause this agreement or any license granted in it to terminate automatically or affect the definition of the Logistic and Operation Management Review (LOMR) or its sublicensee.
8. Miscellaneous
Logistic and Operation Management Review (LOMR) will publish the article (or have it published) in the journal if the article’s editorial process is successfully completed and the logistics and Operation Management Review (LOMR) or its sublicensee has become obligated to have the article published. Logistic and Operation Management Review (LOMR) may conform the article to a style of punctuation, spelling, capitalization, referencing, and usage that it deems appropriate. The author acknowledges that the article may be published so that it will be publicly accessible and such access will be free of charge for the readers
