An Analysis of Supply Chain Risk Management in Metropolitan Waterworks Authority

Abstract

The paper aims to study and analyze supply chain risk management in Metropolitan Waterworks Authority(MWA). We interviewed the MWA expert to gain insights data to identify risks that can occur in MWA. The Risks that affect to piped water production are natural disasters, poor raw water quality, deterioration of machinery and equipment and insufficient staff to operate.The main cause of the risks is poor quality of raw water.Then, chemical stock must be effectively managed to meet with the chemical demand needed for the water treatment process. A Simulation has been applied to simulate the chemical demand that vary by water quality conditions. Then we measured the current performance of inventory management by Order up to inventory approach for In – Stock probability, Out – Stock probability, Maximum Inventory, Minimum Inventory and Safety Stock. The results shown that, MWA should increase the maximum inventory of Chlorine, Polyaluminium Chloride and Activated Carbon to meet the chemical demand at 99.9% of service level toprevent chemical shortage risks. Moreover, MWA can decrease the maximum inventory of Alum, Polyelectrolyte, Lime and Potassium permanganate to reduce inventory costs and chemical deterioration.