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DEVELOPING SUPPLY CHAIN NETWORK WITH PIECEWISE LINEAR TRANSPORTATION COST FOR A SMALL-AND-MEDIUM ENTERPRISE (SME) IN CILEGON

Kurniawan, Bobby and Irman, Ade and Gunawan, Akbar and Umyati, Ani and Febianti, Evi and Wahyuni, Nuraida and Ferdinant, Putro Ferro and Ekawati, Ratna and Tadesse, Fellek Getu (2021) DEVELOPING SUPPLY CHAIN NETWORK WITH PIECEWISE LINEAR TRANSPORTATION COST FOR A SMALL-AND-MEDIUM ENTERPRISE (SME) IN CILEGON. Majalah Ilmiah Pengkajian Industri, 15 (2). pp. 97-104. ISSN 2541-1233

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Abstract

This study proposed a supply chain network for determining suppliers’ location in which the transportation costs are a piecewise linear function. The supply chain network consists of a production facility, suppliers, and customers. These types of costs are found in the fields of transportation, logistics, and purchasing discount. First, the supply chain network is formulated as the mixed-integer nonlinear programming (MINLP) because piecewise linear transportation cost makes the model non-linear. Then, the model is transformed into a mixed-integer programming (MIP) model using the convex-combination method to overcome this nonlinearity. The model was used for solving the problem faced by a small and medium enterprise (SME) in Cilegon. The MIP was solved using the CPLEX software. Sensitivity analysis was carried to provide the SME with several alternatives in handling the suppliers’ location problem.

Item Type: Article
Contributors:
ContributionContributorsNIP/NIM
AuthorUNSPECIFIEDUNSPECIFIED
Subjects: T Technology > TA Engineering (General). Civil engineering (General)
Divisions: 03-Fakultas Teknik > 26201-Jurusan Teknik Industri
Depositing User: Bobby Kurniawan
Date Deposited: 17 Nov 2021 13:16
Last Modified: 17 Nov 2021 13:16
URI: http://eprints.untirta.ac.id/id/eprint/7381

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