Integrating Supply Chain Risk Management in Agriculture: A Case Study of East Kalimantan Granary

Abstract

Managing risk in the agricultural supply chain is more complex and challenging than other commodities due to its perishable characteristic and production nature, primarily based on unpredictable weather conditions and uncontrollable biological processes. This study analyses the agricultural supply chain risk in Penajam Paser Utara Regency, one of the granaries for East Kalimantan Province. A total of 25 risks have been identified and prioritized by fuzzy FMEA, where these risks are divided into eight supply risks, 12 manufacturer risks, and five demand risks. The mitigation strategies give five options: (1) branding image, (2) market penetration, (3) partnership, (4) preventive maintenance, and (5) production capacity to choose from. Using the Analytical Network Process (ANP) method, the priority order of mitigation strategies is to adjust production capacity weighing 35,5%.