SUSTAINABLE SUPPLY CHAIN MANAGEMENT (SSCM), SYSTEM DYNAMICS

• Main Author: FATCHA MUBIENA (NIM : 23416038), GHAIDA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27494
• Institution: Institut Teknologi Bandung

<p align="justify">The demand of batik in Indonesia increased since UNESCO innafurated batik Indonesia as the Masterpices of Oral and Intangible Heritage of Humanity in October 2nd, 2009. Cities that prodeuce Batik especially Solo has increased their sales volume and batik market has expanded since the government announces Oktober 2nd as Batik day. On other hand huge market market segmentation in Indonesia attracts other contries, especially China and Malaysia. The batik imitation from China that produces by using mechanic machine with cheap price and attractive to consumers. This will be the threat for batik producer in Pekalongan, Cirebon and Solo, and possibly threaten the national batik market. <br /> <br /> Aside from the economic problem mentioned above, batik industry also encounters environment and social issue. Several facts that batik industries has pollutes the environmental by liquid waste that directly flows to river and carbon emissions from the process activity or transprotation. It is also found in batik industries that human resource exploitation by paying wage under minimum standard. If the workers welfare is not manage properly, the experienced resource in batik will shift to other industry sector. <br /> <br /> The objective of this research is to propose an assessment model for Sustainable Supply Chain Management (SSCM) in batik industry. Previous research conducted a dynamic evaluation for the economic aspect model in batik industry using Hybrid SCOR 11.0-System Dynmamics approach. The proposed model in this research identifies the dynamics relationship between economic aspect, environment aspect and social aspect. The economic aspect refers to the supply chain score reference model. The environment aspect uses liquid waste and carbon emissions as the assessment parameter, while the social aspect focus on employee's welfare. The simulation result shows that the average of sustainability score for 5 years increase from 67,42% to 82,29% after implementing lean and green manufacturing and pollution decrease to 66%. <br /> <p align="justify">