Paper Titles
Dry Port Development Potential in Jeneponto Regency, South Sulawesi Province
p.231
Disaster Mitigation Scheme for Future Tsunami Event at Awerange Port of South Sulawesi
p.245
The Effect of Dual Slope and Roughness of Coastal Building Walls on Wave Run-Up and Run-Down
p.259
Investigation of Accidents in Construction Projects Based on Human Factors: A Systematic Literature Review
p.271
Risk Management Analysis of Procurement of Silica Correction Raw Materials Using the House of Risk (HOR) Method: Case Study at PT XYZ
p.285
Comparative Analysis of Prefabricated and Conventional Construction Methods: A Systematic Review Using PRISMA on Cost, Time, Quality, and Sustainability
p.301
Flood Management in Sinjai Urban Area
p.319
Understanding Spatial Justice and Informal Settlement Spatial Segregation through Urban Structure Perspective
p.325
The Influence of the Pettarani Flyover Toll Road on the Visual Aesthetics of the Makassar City Environment
p.339

Risk Management Analysis of Procurement of Silica Correction Raw Materials Using the House of Risk (HOR) Method: Case Study at PT XYZ

Article Preview

Abstract:

This study examines procurement risks associated with silica correction raw materials at PT XYZ, with a focus on enhancing supply chain resilience. The House of Risk (HOR) method was implemented in two stages: HOR 1 identified and prioritized key risk agents based on the Aggregate Risk Potential (ARP), while HOR 2 determined the most effective mitigation strategies using the Effectiveness-to-Difficulty Ratio (ETD). Data were collected through interviews and brainstorming sessions involving stakeholders from the procurement, raw material management, mining, and quality control divisions, supported by operational and warehouse data from 2022 to 2024. The results of HOR 1 revealed two major risk agents: A2, which represents supplier failure to meet raw material requirements (ARP = 905), and A1, which reflects the lack of opportunities to engage alternative suppliers (ARP = 378). Based on HOR 2, the highest ETD value was obtained for PA1, seeking alternative suppliers to reduce dependency, followed by PA2, increasing silica buffer stock capacity, PA3, conducting regular supplier performance evaluations, and PA4, strengthening contractual agreements. Collectively, these actions enhance operational continuity, mitigate supply disruptions, and strengthen PT XYZ’s supply chain resilience. The study demonstrates the practical applicability of the HOR method as an effective and replicable framework for managing procurement risks in complex industrial supply chains.

You might also be interested in these eBooks
The 2nd International Conference on Research in Engineering and Science Technology (IC-REST) View Preview

Info:

Periodical:

Engineering Headway (Volume 39)

Pages:

285-299

DOI:

https://doi.org/10.4028/p-tyP9id

Citation:

Cite this paper

Online since:

July 2026

Authors:

Muhammad Zubair Baso*, Sapta Asmal, Muhammad Rusman

Keywords:

House of Risk (HOR) Method, Raw Material Procurement, Risk Management, Risk Mitigation Strategies, Silica Correction Raw Material, Supply Chain Resilience

Export:

RIS, BibTeX

Price:

Permissions CCC:

Request Permissions

Permissions PLS:

Request Permissions

Сopyright:

© 2026 Trans Tech Publications Ltd. All Rights Reserved

Share:

Citation:

* - Corresponding Author

References

[1] Waters, D. (2003, 1993). Inventory Control and Management. Journal of the Operational Research Society, 44(3).

Google Scholar

[2] Pujawan, I. N., & Geraldin, L. H. (2009). House of Risk: A proactive supply chain risk management approach. International Journal of Physical Distribution & Logistics Management, 39(5), 409–428.

DOI: 10.1108/14637150911003801

Google Scholar

[3] Berg, H.-P. (2010). Risk Management: Procedures, Methods, and Experiences. Reliability: Theory & Applications, 79–95.

Google Scholar

[4] Chopra, S., & Sodhi, M. S. (2004). Managing Risk to Avoid Supply-Chain Breakdown. MIT Sloan Management Review, 46(1), 53–61.

Google Scholar

[5] Hendricks, K. B., & Singhal, V. R. (2005). An Empirical Analysis of the Impact of Supply Chain Disruptions on Long-Run Stock Price Performance and Equity Risk of the Firm. Production and Operations Management, 14(1), 35–52.

DOI: 10.1111/j.1937-5956.2005.tb00008.x

Google Scholar

[6] Williams, T. (1993). Risk Management Infrastructure. International Journal of Project Management, 11(5), 5–10.

Google Scholar

[7] Lutfi, A. (2012). Supply Chain Risk Analysis with the House of Risk (HOR) Model. Indonesian Management Journal, 12(1).

Google Scholar

[8] Shahin, A. (2004). Integration of FMEA and Kano Model: An Exploratory Examination. International Journal of Quality & Reliability Management, 21(7), 731–746.

DOI: 10.1108/02656710410549082

Google Scholar

[9] Erlangga, D., & Susanto, N. (2017). Risk Management Analysis of Procurement Activities in Newspaper Printing. Diponegoro Industrial Journal, Vol. 12.

Google Scholar

[10] Juttner, U., Peck, H., & Christopher, M. (2003). Supply Chain Risk Management: Outlining an Agenda for Future Research. International Journal of Logistics Research and Applications, 6(4), 197–210.

DOI: 10.1080/13675560310001627016

Google Scholar

[11] Tang, C. S. (2006a). Perspectives in Supply Chain Risk Management: A Review. International Journal of Production Economics, 103, 451–458.

Google Scholar

[12] Tang, C. S. (2006b). Robust Strategies for Mitigating Supply Chain Disruptions. International Journal of Logistics Research and Applications, 9(1), 33–45.

Google Scholar

[13] Sodhi, M. S., & Lee, S. (2007). Analysis of Risk Sources in the Consumer Electronics Industry. Journal of the Operational Research Society, 58(11), 1430–1439.

DOI: 10.1057/palgrave.jors.2602410

Google Scholar

[14] Sinha, P. R., Whitman, L. E., & Malzahn, D. (2004). Methodology to Mitigate Supplier Risk in Aerospace Supply Chains. Supply Chain Management: An International Journal, 9(2), 154–168.

DOI: 10.1108/13598540410527051

Google Scholar

[15] Goh, M., Lim, J. Y. S., & Meng, F. (2007). A Stochastic Model for Risk Management in Global Supply Chain Networks. European Journal of Operational Research, 182, 164–173.

DOI: 10.1016/j.ejor.2006.08.028

Google Scholar

[16] Youn, S., Yang, M. G., & Park, K. (2013). Strategic Supply Chain Partnerships and Environmental Supply Chain Management Practices. Journal of Cleaner Production, 56, 121–130.

DOI: 10.1016/j.jclepro.2011.09.026

Google Scholar

[17] Zhou, M., Govindan, K., & Xie, X. (2020). How Fairness Perceptions Drive Green Innovation in Sustainable Supply Chains. Journal of Cleaner Production, 260, 120950.

DOI: 10.1016/j.jclepro.2020.120950

Google Scholar

[18] Ferrari, A., Bogner, K., Palacio, V., Crisostomo, D., Seeber, N., & Ebersberger, B. (2023). COVID-19 as a Window for Sustainable and Circular Supply Chains. Cleaner Logistics and Supply Chain, 7, 100101.

DOI: 10.1016/j.clscn.2023.100101

Google Scholar

[19] Vadicherla, T., Saravanan, D., Ram, M. M., & Suganya, K. (2017). Fashion Renovation via Upcycling. In S. S. Muthu (Ed.), Textiles and Clothing Sustainability: Recycled and Upcycled Textiles and Fashion (p.1–54). Springer.

DOI: 10.1007/978-981-10-2146-6_1

Google Scholar

[20] Hossain, T., & Sultana, R. (2024). Sustainable Supply Chain Management Practices: A Case Study of IKEA. In M. Akkas & F. Ahmed (Eds.), Fundamentals of Management: Selected Readings (p.361–368). LP, Dhaka.

Google Scholar

[21] Elahi, B. (2021). Safety Risk Management for Medical Devices. Academic Press.

Google Scholar

[22] Aven, T. (2020). Climate change risk–what is it and how should it be expressed? Journal of Risk Research, 23(11), 1387–1404.

DOI: 10.1080/13669877.2019.1687578

Google Scholar

[23] Cardenas, I. C., Aven, T., & Flage, R. (2023). Addressing challenges in uncertainty quantification: the case of geohazard assessments. Geoscientific Model Development, 16, 1601–1615.

DOI: 10.5194/gmd-16-1601-2023

Google Scholar

[24] Society for Risk Analysis. (2018). Society for Risk Analysis Glossary. Retrieved from Society for Risk Analysis Web.

Google Scholar

[25] Zimon, D., Tyan, J., Sroufe, R., 2020. Drivers OF sustainable supply chain management: practices to align with unsustainable development goals. Int. J. Quality Res. 14 (1), 219–236.

DOI: 10.24874/ijqr14.01-14

Google Scholar

[26] Govindan, K., Shaw, M., Majumdar, A., 2021. Social sustainability tensions in multi-tier supply chain: a systematic literature review towards conceptual framework development. J. Clean. Prod. 279, 123075.

DOI: 10.1016/j.jclepro.2020.123075

Google Scholar