Supply chain risk assessment using best worst method: a case study of agro-industry skipjack tuna in Ambon - Indonesia

One of the main issues in the agro-industry supply chain is identifying and ranking different risk factors to maintain business continuity. This study discusses the agro-food supply chain risk assessment for smoked skipjack tuna in Ambon. Related literature and expert interviews identify risk factors that arise along the supply chain. These risk factors are contained in internal risk, company external operational risk, and macro-level risk. This research aims to evaluate comprehensively the risk factors of the smoked skipjack agro-industry supply chain, which are a priority to be addressed. The decision-making framework uses the BWM (Best Worst Method) to determine each risk factor's relative weight, followed by a sensitivity analysis to determine how robust the outcome is. Experts pick the risk factor assessment, and then an optimization model is modelled to obtain the weight of each risk factor, which is calculated with the help of Lingo software. The findings show that three risk factors will be prioritized to be addressed out of the eleven risk factors assessed, namely "Quality of the final product," "Financial instability," and "degradation of fish populations." Sensitivity analysis was also carried out to see the overall robustness of the results achieved. The weight of the selected risk factor ("final product quality (R1c)") has its weight value changed from 0.1 to 0.9 with an increase of 0.1. These findings are expected to help smoked skipjack tuna agro-industry managers make decisions to reduce supply chain risks and better administration management to maintain the sustainability of their business processes.