Analysis of Supply Chain Risk Mitigation Strategies in the Bogor Compressor Company with the House of Risk Method

Abstract

Compressor companies in the Bogor area, planning of purchasing raw materials and planning for production are based on direct orders from customers. Sometimes customers make sudden orders or increase the number of orders, so companies must change production schedules and order additional raw materials from suppliers. Not all suppliers can meet the sudden demand of the company. Compressor raw materials and other supporting raw materials often experience delays. This study aims to mitigate the causes of supply chain risk to eliminate and minimize company losses. The mapping of the company’s supply chain activities is based on the SCOR. After risk identification, risk assessment is carried out to determine severity, occurence, and correlation. Furthermore, the ARP value calculation is performed to determine the ranking and risk prioritization. Determination of risk prioritization using the HOR method. Based on the Pareto table, the highest ARP value is above 80%, there are 2 causes of risk A1 and A2 that contribute as much as 86.55% of the total ARP supply, the causes of the risk are: A1: Sudden order addition and A2: Breakdown of internal and/or external communication. These two causes of risk are the priority for prevention by the company.