Proceedings of 1st Workshop on Environmental Science, Society, and Technology, WESTECH 2018, December 8th, 2018, Medan, Indonesia

Research Article

Mechanism Sharing Order Information on Simple Supply Chains (Manufacturers) in Reducing Schedule Instability and Total Costs

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  • @INPROCEEDINGS{10.4108/eai.8-12-2018.2283906,
        author={Mochammad Aldy Anwar and Elsa  Rosyidah and Agung  Purnomo},
        title={Mechanism Sharing Order Information on Simple Supply Chains (Manufacturers) in Reducing Schedule Instability and Total Costs},
        proceedings={Proceedings of 1st Workshop on Environmental Science, Society, and Technology, WESTECH 2018, December 8th, 2018, Medan, Indonesia},
        publisher={EAI},
        proceedings_a={WESTECH},
        year={2019},
        month={6},
        keywords={manufacturing instability industry},
        doi={10.4108/eai.8-12-2018.2283906}
    }
    
  • Mochammad Aldy Anwar
    Elsa Rosyidah
    Agung Purnomo
    Year: 2019
    Mechanism Sharing Order Information on Simple Supply Chains (Manufacturers) in Reducing Schedule Instability and Total Costs
    WESTECH
    EAI
    DOI: 10.4108/eai.8-12-2018.2283906
Mochammad Aldy Anwar1, Elsa Rosyidah2,*, Agung Purnomo3
  • 1: Departement of Industrial Engineering, Universitas Nahdlatul Ulama, Sidoarjo, Indonesia
  • 2: Departement of Environmental Engineering, Universitas Nahdlatul Ulama Sidoarjo, Indonesia
  • 3: Departement of Business Creation, Institut Teknologi Bina Nusantara, Malang, Indonesia
*Contact email: elsarosyidah@gmail.com

Abstract

Instability in production planning (or better known as schedule instability) always occurs, especially in the manufacturing industry. This makes company companies make various efforts to minimize the level of instability. There are several strategies that are generally used to minimize instability schedules, including freezing, safety stock/buffer. In this study, we will try to use an information sharing approach related to orders received by manufacturers to minimize the consequences of instability schedules in a simple supply chain. A simple supply chain system is the focus of this study consisting of one employer and one supplier who share information regarding order orders. This research will be conducted to study a full factorial experiment (full factorial experiment). The results of this study, namely through the existence of information sharing mechanisms through orders received by manufacturers, are able to reduce the level of schedule instability in each entity both manufacturing and supplier. In addition, through information sharing, it is also able to eliminate the transfer of risks that manufacturers often make to suppliers in the production planning section, as well as being able to reduce total costs to manufacturing or supplier entities. Through this research, it is expected to provide an understanding of the manufacturing industry of the importance of sharing information in the supply chain system.