SIMULATION MODEL OF RISK TREATMENT FOR CANESUGAR PRODUCTION PROCESS WITH A SYSTEM DYNAMIC APPROACH.

The risks within the continuous production process of perishable agricultural products are inherently complex and dynamic. Risks of raw material supply activities affect the activity itself and its subsequent activities. Analysis results of interpretive structural modeling (ISM) on risk measurement of sugar cane production processes indicate that risk management in sugarcane raw material supply will support other risk handling measures. The simulation results with a system dynamics approach show that risk treatment in the sugarcane supply activities, namely overcoming lack of harvesting labor by increasing semi-mechanical harvesting (SM) and level of sugarcane cleanliness by tightening the implementation of standard operational procedure (SOP), has positive changes in sugarcane supply performance, the performance of milling, processing and generator processes such as daily milling average, SHS sugar production, yield, amount of crystal, and electricity production.