Prepared For Chainers Recruitment Logistics and Supply Chain Laboratory, Industrial Engineering Department, Institut Teknologi Sepuluh Nopember (ITS) Surabaya.

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Presentation transcript:

Prepared For Chainers Recruitment Logistics and Supply Chain Laboratory, Industrial Engineering Department, Institut Teknologi Sepuluh Nopember (ITS) Surabaya

Company Profile Chainers Corporate Ltd. is a government-owned company that produces poultry feed. This company has 8 plants to produce 3 different products

Products NoProductsDescription 1A1H6PSO (Public Service Obligation) Product 2B3K2Non-subsidized product for local consumptions 3C7H8Non-subsidized product for export

Plants Capacity Plants Production Capacity (ton/year) A A A A B B B B Each plant can produce 3 different products but C7H8 needs special specification for export, so it needs higher production capacity than the others.

Factory Warehouse WarehouseCapacity (Ton) W W W W1: road transport usage W2: maritime transport usage W3: export usage

Warehouses Location Medan Padang Lampung Makassar Lamongan Banyuwangi

Distribution A1H6 B3K2 & C7H8 FOB (Free On Board) WarehouseTransportation Mode BanyuwangiRoad Transport Outside JavaMaritime Transport

Priorities Demand for products increases in the last 5 years, the company faces complex problems to plan its production and distribution a year ahead with following priorities: 1. Meeting the demand for PSO product 2. Optimizing company’s profit 3. Optimizing plants utilization

Problems How should the company schedule its production for 8 plants for the next 1 year based on historical demands and company’s policies? How should the company schedule its distribution? How should the company manage its inventory? (Show the balance stock of every warehouse) Based on your decisions, how much profit that the company gain in the end of the year?

Considerations In a year, each plant has to allocate 5 consecutive days for maintenance purpose Over capacity requires extra material handling cost that reduces company’s profit Consider another activities besides shipping goods from origin to destination Consider minimum shipment quantity for non- subsidized products

For more information and additional data, consult to LSCM assistants

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