Prepared For Chainers Recruitment Logistics and Supply Chain Laboratory, Industrial Engineering Department, Institut Teknologi Sepuluh Nopember (ITS) Surabaya

Study Case :Chainers Corporate Ltd

In Supply Chain Perspective

Prepared For Chainers

Recruitment Logistics and Supply Chain Laboratory, Industrial

Engineering Department,

Institut Teknologi Sepuluh Nopember (ITS) Surabaya

Confidentiality Statement : all data given are confidential. Please do not share without permission.

Company ProfileChainers Corporate Ltd. is a government-

owned company that produces poultry feed. This company has 8 plants to produce 3 different products


ProductsNo Products Description

1 A1H6 PSO (Public Service Obligation) Product

2 B3K2 Non-subsidized product for local consumptions

3 C7H8 Non-subsidized product for export


Plants CapacityPlants

Production Capacity (ton/year)

A1 370000

A2 515000

A3 515000

A4 480000

B1 56000

B2 80000

B3 80000

B4 80000

Each plant can produce 3 different products but C7H8 needs special specification for export, so it needs higher production capacity than the others.


Factory WarehouseWarehouse Capacity

(Ton)

W1 28000

W2 23500

W3 150000W1: road transport usageW2: maritime transport usageW3: export usage


Warehouses LocationMedan

Padang

Lampung

Makassar

Lamongan Banyuwan

gi


DistributionA1H6

B3K2 & C7H8 FOB (Free On Board)

Warehouse Transportation Mode

Banyuwangi Road Transport

Outside Java Maritime Transport


PrioritiesDemand for products increases in the last 5 years, the company faces complex problems to plan its production and distribution a year ahead with following priorities:1. Meeting the demand for PSO product2. Optimizing company’s profit3. Optimizing plants utilization


Problems How should the company schedule its

production for 8 plants for the next 1 year based on historical demands and company’s policies?

How should the company schedule its distribution?

How should the company manage its inventory? (Show the balance stock of every warehouse)

Based on your decisions, how much profit that the company gain in the end of the year?


Considerations In a year, each plant has to allocate 5

consecutive days for maintenance purposeOver capacity requires extra material

handling cost that reduces company’s profitConsider another activities besides shipping

goods from origin to destinationConsider minimum shipment quantity for

non-subsidized products


For more information and additional data, consult to LSCM assistants


Documents

Prepared For Chainers Recruitment Logistics and Supply Chain Laboratory, Industrial Engineering Department, Institut Teknologi Sepuluh Nopember (ITS) Surabaya