The supply chain risk analysis using House of Risk method: Seaweed commodity in Jeneponto case study

Abstract

Abstract Seaweed development involves the supply chain activity related to sources of raw material, production, and distribution process, yet well organized. The risk opportunity in each those aspects becomes the main obstacle. This study discusses the risk of raw material supply, production, and distribution process at the seaweed commodity in Jeneponto, one of the centers of seaweed development center in South Sulawesi, Indonesia. The objective of this study was to design the proposed risk management occurred in the supply chain activity. The House of Risk is a method applied in this research, which is the integration between Failure Mode and Effect Analysis (FMEA) and the House of Quality methods. The result shows that the main risk prioritized was the lack of seed supply (8.53%), water contamination (7.82%), and the cost fluctuation by the company (8.09%). The proposed preventive action to prevent those risks was to give joint-managed nurseries establishment, drowning longline on forecast-based, and establish better communication with the company before collection.

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