Supply Chain Risk Mitigation of Enting Geti with Fuzzy Failure Mode and Effect Analysis and Analytical Hierarchy Process (Case Study at Small Medium Enterprises of Kuda Terbang, Blitar District, East Java Province, Indonesia)

Abstract

The aim of study are to identify, measure and assess supply chain risks and to determine strategy alternatives to reduce the risk of supply chains at SMEs Kuda Terbang. SMEs Kuda Terbang is one of the business entities producing enting geti in the center of enting geti production in Kademangan, Blitar regency. Problems that occur in the supply chain are low availability of raw materials, production equipment using traditional equipment and fluctuating market demand. The method used in this study is Fuzzy FMEA and AHP. Variables used in this study were ingredients, production and products. Expert respondents used in this study amounted to 6 people for supply chain risk assessment and 2 persons for the determination of supply chain risk mitigation strategies consisting of suppliers, companies, retailers and academics. The risks identified in the ingredients variables are 4 risks, 7 risks on the production variable and 5 risks on the product variables. The highest risk in ingredients variable is the fluctuating ingredients prices (FRPN of 5.67), in production variable is the uncertain production schedule (FRPN of 6.87) and in product variable is the product return (FRPN of 6.83). The priority strategy of supply chain risk mitigation of enting geti at SMEs Kuda Terbang is the quality control with the weight of 0.35.