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Identification and mitigation of biodiesel supply chain risk in CV. XYZ
Nurwahidah A.
Aip Conference Proceedings
Abstract
CV. XYZ is a company that produces biodiesel. Currently, the company is faced with the problem of the biodiesel supply chain which is vulnerable to the risk of a shortage of raw material supply. Therefore, an alternative strategy is needed to minimize the existing risks. This study aims to identify the risks that exist along the biodiesel supply chain and determine alternative risk mitigation strategies in the biodiesel supply chain using the Failure Mode Effects and Analysis (FMEA) and Analytical Hierarchy Process (AHP) methods. The FMEA method's computation findings showed that collector competition for bulk oil is the supplier-side priority when it comes to biodiesel supply chain risk. The company's top concern regarding the biodiesel supply chain risk is missing the production target. The priority of biodiesel supply chain risk at retail is running out of stock when there is a consumer order. The results of the calculation of alternative strategies using the AHP method obtained alternative risk mitigation strategies for the biodiesel supply chain, including establishing partnerships, maintaining supply, production planning, and sales forecasting.