11th Annual International Conference on Industrial Engineering and Operations Management

Design Risk Mitigation Strategy in Perishable Product Supply Chains

Agus Mansur & Mellya Zaizafuun Arasti
Publisher: IEOM Society International
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Track: Supply Chain Management
Abstract

The supply chain for perishable products is complex and requires careful handling. Uncertain consumer demand will affect required cost climatic conditions and also affect product quality. This research was conducted on XYZ bakery, which is an industry that produces various kinds of bread. This research aims to determine the causes of risks that affected the supply chain's risks and develop a mitigation plan. The method used is the SCOR model and House of Risks (HOR). The SCOR model is used to map supply chain activities and the HOR method for determining risks, causes of priority risks, and coping strategies. This research resulted in 9 risks event with 18 risks causes in the planning process, six risks event with nine risks causes in the sourcing process, eight risks event with 12 risks causes in the making process, seven risks event with 14 risks causes in the delivery process and four risks event with seven risks causes in the return process. The resulting recommendations for risk mitigation include: evaluate supplier performance, raw material inventory management, product forecast, increase marketing, allocating orders, add an employee in the production department, evaluate employee performance, conducting training for employees, and application of information system.

Keywords: Risk, Supply Chain, Perishable, House of Risk (HOR)

Published in: 11th Annual International Conference on Industrial Engineering and Operations Management, Singapore, Singapore

Publisher: IEOM Society International
Date of Conference: March 7-11, 2021

ISBN: 978-1-7923-6124-1
ISSN/E-ISSN: 2169-8767