SUPPLY CHAIN CONTRACT SELECTION FOR RETAILER AT POULTRY FARM (CASE STUDY : AL-IKHLAS FARM)

• Main Author: Humaida, Nabila
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67372
• Institution: Institut Teknologi Bandung

Al-Ikhlas Farm is one of the Small and Medium Industries (IKM) laying hens in West Sumatra, which was established in 2000. Al-Ikhlas Farm is located in Jorong Parumpuang, Nagari Koto Baru Simalanggang, Payakumbuh City, West Sumatra. Al-Ikhlas Farm produces around 86,400 eggs every day. Al-Ikhlas Farm has four large retailer with distribution covering Pekanbaru, Jambi, Bengkulu and Jakarta. In the process of selling eggs to four different retailers. Currently, the farm just uses trustedbased for the egg distribution procedure. Trusted-based for distribution of eggs and fluctuating eggs prices create problems between farmretailer which are fluctuation of quantity and fluctuation of reservation time. Fluctuation of quantity is the main issue when the price has fluctuated because when the demand is down, the retailer tends to decrease the number of reservations compared to a weekly reservation. This problem can be results in a buildup of eggs averaging 138 bonds worth 49,68 million. This study uses the Current Reality Tree to analyze the root cause of the problem that faces the farm. The primary root cause of this study is that the farm has not used supply chain contracts with retailers. The Analytical Hierarchy Process (AHP) approach was used in this study to select the best supply contract. This procedure is required to establish the criteria, sub-criteria, and weights for each criterion. Based on AHP approach, the solution to this root cause is to implement a quantity flexibility contract for four large retailers. Implementing a quantity flexibility contract will enhance the supply chain profit equals Rp. Rp48.021.322,- for Retailer A, Rp.17.669.702,- for Retailer B, Rp 26.403.667,- for Retailer C and Rp.44.379.203,- for Retailer D.