A SYSTEM DYNAMICS MODEL FOR IMPROVING MANUFACTURING AND SUPPLY CHAIN COST EFFICIENCY IN KALBE NUTRITIONALS

• Main Author: Kurniawan, Totok
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/46699
• Institution: Institut Teknologi Bandung

Kalbe Nutritionals is one of Kalbe Farma tbk. Division, focus on health nutrition and have a complete product range for all important stages in consumer’s lives. Have a strong vision to be leading global nutritionals company driven by innovation, strong brands & excellent management To anticipate increasing of Cost of Goods Sold (COGS) and selling price to distributors, the company need to improve production and supply chain models. Currently Kalbe Nutritionals supported by 1 own factory, 2 joint venture factories and 17 contract manufacturers. Four of them produce milk powder. This research aim to develop some options to achieve more efficient manufacture and supply chain operation for milk powder. System dynamic is used as a tools to develop more efficient model of manufacturing and supply chain using Vensim software. Three scenarios are developed by using district (area) approach as the basis of the improvement. Based on the models, more efficient manufacturing and suply chain operation can be achieved by producing the product closed to market in district which have a lower district minimum wage. This will be result a lower cost of goods sold and selling price to distributors, and also maintain a competetive cost in long term period. By implementing the models of contract manufacturing which closed to market with a lower district minimum wages, the company have allowance to develop the brands, aligned with company vission.