Threat Utility of the Seaport Risk Factors: Use of Rough Set-Based Genetic Algorithm

Abstract

The threat due to risk factors disrupts supply chain continuity. To ensure supply chain continuity, it is important to understand the interdependency between seaport risk factors and the threat of supply chain disruption, from an economic and risk management perspective. This study understands the threat utility of port-centric supply chain risk disruption (PSCRD). It proposes a rough set-based genetic algorithm model and adopts the hybrid-conjoint analysis concept to generate the threat utility function. It is the sum of the level of disruption by the conditional seaport risk factors influencing the satisfaction of seaport-fulcrum supply chain continuity. It selects Indonesia to illustrate PSCRD empirically. Based on 153 samples of experts’ evaluation, the rough set model highlights 24 conditional seaport risks as central tendency risk factors and classifies them into ten-dimensional threat factors. The results show that the seaport service process threat is the primary source of PSCRD in Indonesia; it reduces utility satisfaction to 32.2%, in the 100% utility estimation. This is followed by the relationship and planning process threats with 28% and 26.6% utilities, respectively. This study presents a framework to analyze PSCRD in relation to utility satisfaction and demonstrates the need for an integrated plan to enhance SSC resilience.