MATERIAL OPTIMIZATION STRATEGY TO MINIMIZE MATERIAL SHORTAGE CASE AT INDONESIA ELECTRICITY COMPANY SUPPLY CHAIN MANAGEMENT DIVISION

• Main Author: Hanifah Sadiah, Siti
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/63928
• Institution: Institut Teknologi Bandung

Indonesia electricity company offers main services that need to meet Ministry standard. If the company exceed the standard, it needs to pay compensation. In 2020, the company paid compensation up to IDR 16 billion. The Board of Commissioners advised the Board of Directors to implement better material supply chain management in order to overcome the problem of the main services that exceed the standard. Therefore, the research questions cover what is the root cause, what are the alternative solutions, and what is the best solution for the problem. The research objectives are to find the root cause, the alternative solutions, and the best solution for the problem. In order to know the root cause of the problem, several tools are used which are Laney P chart, Pareto chart, and problem tree diagram. The result of root cause is the supply chain process has not been integrated. Improvement proposal provides in the combination of BPMN, Q-Model, and discrete event simulation to show the best and robust scenario under sensitivity analysis. The result shows that Scenario 1 which using reorder point (ROP) and quantity to be ordered (Q*) calculation could reduce the percentage of the main services that exceed the standard from 21,2% into 3,4% and maintain up to 4,3% in extreme conditions where customer requests increased up to 5 times. The final business implication from this research is provides an overall improvement proposal for the regulator in the company headquarter, procedural and operational level for the other intermediate and operational units.