Supply chain risk assessment of cotton shirt production uses the house of risk method

Abstract

The purpose of this study is to mitigate risks in supply chain activities in the production of cotton shirts. The method used in this research is the House of Risk (HOR) approach based on the Supply Chain Operation Reference (SCOR) model. The House of Risk (HOR) offers a framework for effectively controlling risks in managing risks from risk agents. Aggregate Potential Risk (ARP) is used to determine the priority of risk sources that need to do in the design of mitigation strategies. The research results identify as many as 26 Risk Events and 21 Risk Agents. Three Risk Agents based on ARP values are Procedures for Delivery of Less Organized Raw Materials, limited and Sudden Product Demand from consumers Mitigation actions used to prevent the causes of risk from occurring are creating standard operating procedures for raw material delivery activities. Also, a contract system establishes between suppliers of raw materials and freight forwarding services. Migration in human resources is evaluating employee performance. Empowerment of the community around the company, subcontracting to other similar companies, reviewing raw material stock is an act of meditation in sudden product demand.