THE DEVELOPMENT OF DYNAMICS MODEL FOR 4-ECHELON SUPPLY CHAIN SYSTEM (Case study: Distribution System for Subsidized-Urea-Fertilizer on PT. Pupuk Kujang)

• Main Author: HARSYAH BAKHTIAR NIM: 23408076, LILA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/23993
• Institution: Institut Teknologi Bandung

Subsidized-urea fertilizer is categorized as important commodity that needed by agriculture sector. System and policy on subsidized-urea fertilizer distribution is <br /> <br /> <br /> <br /> regulated by Minister of Trade Ordinance Number 21 Year 2008 in order to fulfill the demand in farmer level. National-cumulative-supply-demand analysis shows that <br /> <br /> <br /> <br /> about 1 million Ton of urea are available as export potential that is not well utilized yet evens the domestic demand has been filled. Existing distribution policy need to be raise up due to lower system-efficiency with performance criteria i.e. availability on farmer level, annual logistic cost, and utilization of export potential. The research's aim is to determine the distribution policy in order to rise up the performance of existing system with the case study on PT. Pupuk Kujang regional marketing area. The model of 4-echelon supply chain system as a tool to determine the distribution policy is developed by using system dynamics methodology. The periodic review model on inventory–control system theory is used as reference accompanied with three approaches i.e. integrated planning, echelon stock, and single cycle-time policy. <br /> <br /> <br /> <br /> Simulation method is used to evaluate a set of policy scenarios that consist of minimum stock rule (KPM) factor, order-up-to–level (Rmax) factor, and cycle-time <br /> <br /> <br /> <br /> replenishment on distribution-entity (WS) factor. Dynamic simulation process results the distribution system performance for 18 scenarios that has been evaluated. The selection process to obtain the best scenario as proposal is based on its ability to <br /> <br /> <br /> <br /> improve the existing performance in the most optimal value. The simulation result shows that scenario 5 is considered to be the best scenario due to its significancy on raising the availability (from 90, 13% to 94, 45%). The raise of total annual logistic cost about 9, 7% could be compensating with profit gain from export about 240.000 Ton. The near optimal of export quota in terms of skenario 5 implementation is 75% from simulation result. However, the simulation model needs <br /> <br /> <br /> <br /> to be elaborate further to obtain accurate timing and forecast the feasibility of exporturea quantity due to total annual calculation on continuous simulation. As a rule of thumb from graphic illustration, export urea could be executed throughout the year except the peak of cultivating season on December which the safest period on April - August due to lower national demand. From a set of analysis had been done, several strategies to be proposed that enable to rise up the existing-system performance i.e. lead time reduction, alteration the distributor transaction point to regional warehouse, entity pursuance to integrated policy, and echelon reduction.