Analytical Hierarchy Process to Assess the Supply Chain Risk for Improving Sustainability of Shallot Agribusiness in Low Land Area

Abstract

Shallots are one of the potential horticultural commodities, but they face various risks that affect the performance of the supply chain for shallot agribusiness. To reduce potential risks, it is necessary to identify various types of risks with a priority scale. This study is to analyse various risks in supply chain flows and the involvement of various actors in shallot agribusiness in Majalengka Regency in the lowlands. The research was conducted using a descriptive survey method and data collection of 50 respondents through interviews and questionnaires. The collected data were analysed using the Analytical Hierarchy Process (AHP) model. The results showed that the risks that occurred in the lowlands were production risk (15.6%), price risk (14.2%), market risk (10.9%), environmental risk (8.7%), and distribution risk. (8.6%). The actors involved consist of farmers, farmer groups, traders, middlemen, retailers, and consumers. The results of this study can emphasize to facilitate decision making in risk mitigation by paying attention to the priority scale.