| Summary: | Banyumulek pottery industry is the largest center of pottery industry in
Lombok Barat regency. The number of craftsmen household is 70% from 3,203 of
household. Decrease of welfare is 14% in 2009, the indicated limited capability of
Banyumulek community to develop their business. The small medium enterprise
is dominated by community with low level of education (85%). Limited
knowledge and practice of the Banyumulek community to manage the business an
adverse impact on their business. The decision to determine location of facility
such as warehouse, level of inventory and transportation and distribution strategy
could have influences of the costs and service level of supply chain to response
the market. The efficient and effective of pottery industry supply chain network
provide positive contribution in industrial activity.
This research aims at to understanding Banyumulek supply chain
network, identifying and determining the better design of efficient and effective
supply chain network strategy. This research uses methods of Gravity Location
Model to determine the location of the warehouse. The concept of Minimum-
Maximum is use to determine the level of inventory. Evaluation of transportation
costs strategies and Savings Matrix Model in distribution strategy is conducted to
optimize supply chain network of Banyumulek pottery industry.
The existing system of the Banyumulek pottery supply chain network
configuration with a production center in Lombok, and facility of warehouse in
Bali, from warehouse the products distributed to the art shop in Tegallalang,
requires cost of investment of IDR 65,000,000 and operational cost is IDR
121,450,000 per year. Two scenario of supply chain networks are (a) configuration
supply chain without warehouse and (b) configuration supply chain with
warehouse. The selected supply chain network design is the configuration without
warehouse (rent a truck). The investment and operational of supply chain cost for
this alternative is IDR 70,800,000 and operational cost savings without warehouse
compared of the existing system of the Banyumulek pottery supply chain network
configuration is IDR 57,350,000 per year.
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