Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia

Research Article

Network Optimization Design to Reduce Lost Sales Risk on Supply Chain: A Case Study of Furniture Product

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  • @INPROCEEDINGS{10.4108/eai.31-3-2022.2320943,
        author={Nur Layli Rachmawati and Adji Candra Kurniawan and Yelita Anggiane Iskandar and Kharisa Ainun Nikmah and Michael Sembring and Talitha Adna  Darrel Caluella Riyanto and Thobias Adriel Silaen and Ine Inayah and Kenzie Dwianugerah Delu},
        title={Network Optimization Design to Reduce Lost Sales Risk on Supply Chain: A Case Study of Furniture Product},
        proceedings={Proceedings of the 1st International Conference on Contemporary Risk Studies, ICONIC-RS 2022, 31 March-1 April 2022, South Jakarta, DKI Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICONIC-RS},
        year={2022},
        month={8},
        keywords={furniture supply chain facility anylogistix simulation green field analysis network optimization},
        doi={10.4108/eai.31-3-2022.2320943}
    }
    
  • Nur Layli Rachmawati
    Adji Candra Kurniawan
    Yelita Anggiane Iskandar
    Kharisa Ainun Nikmah
    Michael Sembring
    Talitha Adna Darrel Caluella Riyanto
    Thobias Adriel Silaen
    Ine Inayah
    Kenzie Dwianugerah Delu
    Year: 2022
    Network Optimization Design to Reduce Lost Sales Risk on Supply Chain: A Case Study of Furniture Product
    ICONIC-RS
    EAI
    DOI: 10.4108/eai.31-3-2022.2320943
Nur Layli Rachmawati1,*, Adji Candra Kurniawan1, Yelita Anggiane Iskandar1, Kharisa Ainun Nikmah1, Michael Sembring1, Talitha Adna Darrel Caluella Riyanto1, Thobias Adriel Silaen1, Ine Inayah1, Kenzie Dwianugerah Delu1
  • 1: Universitas Pertamina
*Contact email: nl.rachmawati@universitaspertamina.ac.id

Abstract

We present the supply chain operational planning problem of an integrated furniture company located in Indonesia. We determine the location of the company’s new facility considering demand location, coverage, and network to minimize movement costs of volumed-product. The objective is to decide optimal additional distribution center (DC) or factory allowing the company to be competitive in the greater market. Green Field Analysis (GFA) and Network Optimization (NO) of anyLogistix were used to find an optimal furniture supply chain network. GFA results reported that the new facility should be located in South Bali with a latitude point of -8.086 and a longitude point of 115.176 while NO preferred Scenario 1, build a DC generating a profit of IDR 45,755,640,179. Other alternatives would be Scenario 2, build a factory providing a profit of IDR 45,955,816,089. Operational risk comparison shows that it is better to follow the 2nd scenario.