What is Demand and Supply Risk

Supply chain of agricultural commodities becomes a major concern of Indonesian scholars and practitioners. Many companies engaged in this industry are unable to survive in the market. This is contrary to the natural conditions of Indonesia with abundant natural resources and plenty of commodity producers. Problems often arise in the field of supply chain risk which link to commodities in Indonesia: price fluctuation, the scarcity of the commodity, supply and demand are not balanced, distribution and production costs are expensive, raw material commodities that are imported, and natural disasters. Companies that engage in agricultural business have high risk of failure. To overcome this, this chapter reviews supply chain management concept by looking at risk consideration that may raise business uncertainties. The lack of studies to investigate the risk factors in agribusiness makes this study contribute to the supply chain literature.