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Journal of Economics, Management, Entrepreneurship, and Business (JEMEB) Abnus Publisher

Improving the Performance of Oil Palm NPK Fertilization Using Risk Management and Analytic Hierarchy Process

2022-11-30
Published
107-126
Pages
OPEN
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RK
Rofiq Kurniawan
Universitas Mercu Buana
AH
Agustinus Hariadi
Universitas Mercu Buana
Abstract

Purpose: This study aims to improve the performance of oil palm fertilization by analyzing the fertilizer procurement process, particularly in addressing inefficiencies and mismatches between planned and applied fertilizers.

Research Methodology: The study employs a descriptive analysis approach based on identified problems. Priority risks are evaluated using Failure Mode and Effects Analysis (FMEA), while mitigation strategies are formulated using the Analytic Hierarchy Process (AHP). Data are collected through observations and questionnaires involving stakeholders with relevant expertise at the research site.

Results: The findings indicate that key risks occur across procurement stages. In planning, the main risk is budget availability not aligned with recommendations (RPN 27). In supplier selection, delays in tender announcements are identified (RPN 18). In delivery, delays are caused by late contract signing (RPN 18), while in acceptance, fertilizers are often received beyond the scheduled time (RPN 18). Procurement planning is the most important criterion (0.575), followed by supplier selection (0.214), delivery (0.134), and acceptance (0.077).

Conclusions: Fertilizer procurement performance can be improved through strengthening the budgeting system, improving procurement documentation, and optimizing supplier selection processes.

Limitations: This study is limited to a single research site and focuses only on procurement-related factors, which may not fully represent broader operational conditions.

Contributions: This study contributes by integrating FMEA and AHP to identify risk priorities and develop practical strategies for improving fertilizer procurement performance in oil palm plantations.

Analytic Hierarchy Process Fertilizer NPK Performance oil Palm Risk Management
How to Cite
Kurniawan, R., & Hariadi, A. . (2022). Improving the Performance of Oil Palm NPK Fertilization Using Risk Management and Analytic Hierarchy Process. Journal of Economics, Management, Entrepreneurship, and Business (JEMEB), 2(2), 107-126. https://doi.org/10.52909/jemeb.v2i2.85
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How to Cite

Kurniawan, R., & Hariadi, A. . (2022). Improving the Performance of Oil Palm NPK Fertilization Using Risk Management and Analytic Hierarchy Process. Journal of Economics, Management, Entrepreneurship, and Business (JEMEB), 2(2), 107-126. https://doi.org/10.52909/jemeb.v2i2.85
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