| Summary: | Furniture industry uses forest products as raw material, such as many kind of woods, rattans, and the others. Normally, after cutting down the trees, people have to re-planting balance number with how many trees they cut. But most of people just take everything from forest without responsible with sustainability of the forest. In other hand, crude palm oil (CPO) industry creates large palm plantation. In some cases, enlargement those palm plantation areas has taken forest area, which should not use for those purposes. Both CPO industry and furniture industry need to be supported in order they can compete in global market and can contribute for Indonesian economics. The developing of both industries should be balance and should consider trade off among them so both of them can stand longer.
In this research, we propose a dynamic model and simulate the model for showing interaction between Indonesian furniture industry and CPO industry in exploiting forest resources so we can predict how are the forest condition in the future and both industries will be. The results can be used as the suggestion to create a sustainable supply chain of furniture and CPO industry and to save Indonesia forest from the extinction.
Keywords
Dynamic models, forest sustainability, supply chain.
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