A Facility Location-Allocation Model for Determining Number of Depot to Distribute Material in the Rattan Furniture Industry by Considering Dynamic Demand

Yuniaristanto, and Sutopo, Wahyudi and Aisyati, Azizah and Andreadi, Puput Wahyu (2010) A Facility Location-Allocation Model for Determining Number of Depot to Distribute Material in the Rattan Furniture Industry by Considering Dynamic Demand. APIEM.

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    Abstract

    This paper is a study of a facility location-allocation problem in the rattan furniture industry. There are six production centers (PCs) of rattan furniture in Surakarta and its surroundings. However, their export sales are decline due to some possible problems in raw rattan distribution network from the sources centers (SCs), e.g. Borneo and Celebes Island to production centers. In the previous research, the model was expanded to support local government decide to determine optimal number of depot by consider static demand. This policy is aimed to cut the distribution channel and reduce total supply chain costs. Due to changing of global market, the demand is fluctuate. The previous model cannot anticipate this situation; consequently the local government needs a facility location-allocation model by considering dynamic demand. The objective of this research is to develop a model for supporting the local government to decide optimal number of depot by considers dynamic demand. A mixed integer non-linear programming (MINLP) was proposed to minimize total supply chain costs. The proposed model assumed that the demand for multiple products is known in advance. The potential raw rattan depot and source locations as well as their maximum capacities are also known. Finally, the proposed model can be used as instrument decision making to determine facility location-allocation. Keywords: dynamic demand, a facility location-allocation model, rattan industry competitiveness, total supply chain costs.

    Item Type: Article
    Subjects: T Technology > T Technology (General)
    Divisions: Fakultas Teknik > Teknik Kimia
    Depositing User: mr azis r
    Date Deposited: 20 May 2013 23:50
    Last Modified: 20 May 2013 23:50
    URI: https://eprints.uns.ac.id/id/eprint/773

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