Abstract

Good risk management will reduce the impact and risk of an event. In this study discussed the risks that may arise in the wooden toy industry supply chain and how to manage these risks. The calculation divided into three phases; there are risk mapping, risk assessment, and risk management. House of Risk (HOR) is used in calculating potential risks and Analytical Network Process (ANP) is used to choose the best strategy for supply chain risk management. Followed by HOR calculation, risk that has the greatest value and selected as potential risk is the risk of price/cost fluctuations with an ARP value of 432. The strategy of this risk is grouped based on 2 causes, namely raw material price fluctuations and poor management. With ANP calculations, the strategy for raw material price fluctuations are understanding and determining the quantity of material used (28.14%) and combining woods with various commodities (23.23%). Then the alternative for poor management are doing strategic financial accounting (54.48%) and doing financial planning (33.07%).

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