TITLE

Model Development for Allocation of Raw Material in Timber Processing Industry in Indonesia

AUTHOR(S)
Hisjam, Muh.; Oktyajati, Nancy; Jauhari, Wakhid A.; Sutopo, Wahyudi
PUB. DATE
December 2012
SOURCE
World Academy of Science, Engineering & Technology;2012, Issue 72, p228
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This research is intended to develop a raw material allocation model in timber processing industry in Perum Perhutani Unit I, Central Java, Indonesia. The model can be used to determine the quantity of allocation of timber between chain in the supply chain to select supplier considering factors that are log price and the distance. In determining the quantity of allocation of timber between chains in the supply chain, the model considers the optimal inventory in each chain. Whilst the optimal inventory is determined based on demand forecast, the capacity and safety stock. Problem solving allocation is conducted by developing linear programming model that aims to minimize the total cost of the purchase, transportation cost and storage costs at each chain. The results of numerical examples show that the proposed model can generate savings of the purchase cost of 20.84% and select suppliers with mileage closer.
ACCESSION #
88941215

 

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