Supply Chain Risk Mitigation Based on The Integration of House of Risk and MOORA
DOI:
https://doi.org/10.22219/JTIUMM.Vol25.No2.145-160Keywords:
House of Risk, MOORA, supply chain, Risk MitigationAbstract
Supply chains play a critical role in the operational success of organizations, impacting both costs and product quality. However, they are often exposed to various risks that can disrupt business processes. This research aims to identify supply chain risks and propose mitigation strategies using the House of Risk (HOR) and Multi-Objective Optimization on the Basis of Ratio Analysis (MOORA) methods. Through interviews, key issues were identified in a fiberglass company's supply chain, including raw material supply fluctuations, procurement cost variability, defective materials, inappropriate specifications, outdated technology, insufficient worker skills, and ambitious company targets. The novelty of this study lies in the application of MOORA, which introduces a correlation matrix for risk mitigation by considering both cost minimization and benefit maximization. The analysis identified 12 risk agents and 26 risk events, which were prioritized using HOR stage 2 with the MOORA method. The top preventive actions were ranked, providing actionable recommendations for companies to address supply chain risks more effectively. The findings of this research offer practical insights for companies in the fiberglass industry to enhance supply chain resilience by integrating cost and benefit considerations into their risk management strategies.
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