Distribution of Subsidized Fertilizers Considering Time-Windows and Stock Criticality: A Simulation Study in a Fertilizer Company

Noordika, Azaria Zada (2018) Distribution of Subsidized Fertilizers Considering Time-Windows and Stock Criticality: A Simulation Study in a Fertilizer Company. Undergraduate thesis, Institut Teknologi Sepuluh Nopember.

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Abstract

PT. X is a subsidiary of state-owned company, PT. Pupuk Indonesia Holding Company, which produces and distributes fertilizers and non-fertilizer products to fulfill domestic and export market. As the biggest subsidiary company between other subsidiaries, PT. X has given a role to support the program of government to increase national agricultural product by producing and distributing subsidized fertilizers, such as Urea, ZA, SP-36, and Phonska. In distributing the subsidized fertilizers, especially the land distribution to district warehouses in East Java, the common problem that the company facing is the imbalanced stock between different types of fertilizer products in the district warehouse, which makes the service level is not balanced. There are some product types that have very high amount of stock, while the others are having stock-out. To overcome this problem, the author proposes this research to find the optimum fertilizer distribution decision to fulfill demand of multiple products in PT. X to test some improvement scenarios that adjust the delivery shift assignment rule to become considering time-windows, number of product types shipped in one truck, and dispatching rule considering the stock criticality. By implementing the selected scenario, which is to deliver two most critical product types in one truck and adjusting the delivery shift to consider the time-windows, it is found that the average service level becomes 77.34%, with the cost reduction of Rp 2,078,756,721 or 6% from the existing condition, to become Rp 30,936,138,279 in a year, due to joint-replenishment that is implemented.

Item Type: Thesis (Undergraduate)
Uncontrolled Keywords: fertilizer, distribution, multiple products, stock criticality, ARENA, simulation, time windows
Subjects: T Technology > T Technology (General) > T58.62 Decision support systems
Divisions: Faculty of Industrial Technology > Industrial Engineering > (S1) Undergraduate Theses
Depositing User: Azaria Zada Noordika
Date Deposited: 07 Mar 2018 06:56
Last Modified: 07 Mar 2018 06:56
URI: http://repository.its.ac.id/id/eprint/49981

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