The Application of Green Supply Chain Management: Case Study in Electronic Waste Informal Sectors in Surabaya City, East of Java-Indonesia

Organized by: Laboratory of Logistics and Supply Chain Management, Industrial Engineering Department, Institut Teknologi Sepuluh Nopember (ITS) Surabaya - Indonesia

Supported by: International Management Institute (IMI) LogHealth Malaysia Institute for Supply Chain Innovation (MISI) National Taiwan University of Science and Technology (NTUST) Victoria University

ISSN: 2407-2273 @2014

Edited by: I Nyoman Pujawan Iwan Vanany Imam Baihaqi

@copyright Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember (ITS)

Contents Welcome Speech From Conference Chair ...... viii Welcome Message From Rector Of Its Surabaya ...... x Conference Committee ...... xi Conference Sponsor ...... xiii Sponsor Profile ...... xiv Industrial Engineering Its...... xvii Oscm Journal ...... xix Keynote Speakers ...... xx Workshop For Doctoral And Emerging Scholars ...... xxii List Of Participants ...... xxiii Abstracts ...... xxxii Towards A Conceptualization Of Sustainable Supply Chain Integration ...... 1 A Literature Review On The Closed Loop Supply Chain And Its Impact On The Forward Bullwhip Effect ...... 2 Initial Green Supply Chain Management Mapping For Dairy Industry On Smes Level ...... 3 Does Internet Of Things Moderate The Impact Of Green Supply Chain Integration On Green Supply Chain Agility? ...... 4 Determinants Of Sustainability In Supply Chains ...... 5 Construction Of Green Supply Chain For Organic Products ...... 6 Estimate The Path Coefficient Linking Between Co-Production On Sustainable Innovation Performance ...... 7 The Impact Of Environment Degradation On The Sidoarjo Shrimp Industry Supply Chain 8 Simulated Annealing For Green Vehicle Routing Problem...... 9 Commodity Production, Consumption, And Distribution With Coordination Of Soft Factors And Hard Factors ...... 10 A Robust Machinelayout Under Demand Uncertainty...... 12 An Integrated Production-Inventory Model For Food Products Based On Shelf-Life Pricing ...... 13 Improving Performance Of Supply Chain In Port By Six Sigma Methodology Approach .. 14 The Impact Of Power Distance And Individualism On Total Quality Management: An Empirical Research On Indonesian Manufacturing Firms...... 15 Alleviating Traffic Congestion Around Our Cities; How Can Supply Chains Address The Issue? ...... 17 The Global Logistics Network Design Problem With Rules Of Origin ...... 18 The Growth Of Third Party Logisticsindustry: Literature Study Andresearch Agenda ...... 18 Assessing Logistic Strategy For Service Quality At Selected Agglomerated Retail Shopping Centres In Thane City And Suburban Mumbai In India...... 20 Workforce Ageing In The Australian Transport And Logistics Industry: Reality Or Myth?21 Agribusiness Performance Measurement System : Supply Chain And Enabling Environement Performance...... 22 Production System In Food Industry:A Literature Study ...... 23 Designing An Integrated Foodsupply Chain With Cross-Docking: A Social Network Approach ...... 24

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Development And Implementation Of A Fruits Electronics Traceabilitysystem In Fresh Fruits Supply Chain ...... 25 Actors Interaction On Price Transmission In Rice Supply Chain ...... 26 A Synchronization Algorithm Of Seeding And Planting Scheduling With Sales Planning For Contract Farming Of Fresh Vegetable Supply Chain...... 27 Can An Underachiever Becomecompetitive? The Caseof The Romanian Food Industry .. 28 Soft Agent Based Modeling For Agri-Food Supply Chain Coordination ...... 29 Analysing Risks In Milk Supply Chain: A Preliminary Finding ...... 30 Local Food Production, Customer Preferences And Logistical Consequences ...... 31 Retailers Clustering To Minimise Profit Gap Among Distributor Centres Using Genetic Algorithm ...... 32 Routing Order Picking In A Warehouse Using Heterogeneous Picking Tools And Split Picking ...... 33 Oilfield Crew Scheduling Using Mathematical Modelling ...... 34 Challenges Of The Zimbabwean Natpharm Based, Public-Sector Humanitarian Logistics And Supply Chain Of Hiv And Aids Commodities ...... 35 A Model For Equity In Humanitarian Relief Supplychain ...... 36 A Macro And Micro-Level Evaluation Of Stakeholders’ Collaboration Strategies For Sustainable City Logistics Operations ...... 37 Prosim- A Production Simulation...... 38 Understanding The Agribusiness Cluster Development Using System Thinking: A Case Study Of Red Chili In West Java ...... 39 An Application Of Supply Chain Operation Reference (Scor) And Analytical Hierarchy Process (Ahp) Models In A Supermarket...... 40 Assembly Line Research: A Review Ok Key Issues And Methods ...... 41 Supply Chain Synergies In Post-Merger Environments: The Case Of The Uk Food Industry ...... 42 The Applicability Of Life Cycle Assessment Of Bio-Fuels In South Africa ...... 43 The Application Of Green Supply Chain Management: Case Study In Electronic Waste Informal Sectors In Surabaya City, East Of Java-Indonesia ...... 44 Model Development To Determine The Establishment Location Of New Modern Markets That Minimize The Erosion Of Traditional Markets’ Existence ...... 45 Designing Early Warning System And Spread Handling Of Dengue Demorrhagic Fever (Dbd) Using System Dynamics Approach And Knowledge Sharing ...... 46 Managing The Supply Chain – Additive Manufacturing Perspective ...... 47 Comparison Between Fixed Order Quantity And Periodic Review Replenishment For Distributing Liquid Product Under Compatibility Constraints ...... 47 Understanding The Agribusiness Cluster Development Using System Thinking: A Case Study Of Red Chili In West Java ...... 49 Logistics System Development Of Vegetable Product For Structured Market : A Case Study Of Apacking House ...... 50 A Hybrid Metaheuristic For The Multiple-Choice Multidimensional Knapsack Problem .. 51 The Effect Of Random Yield Of Product Returns To The Pricing Decisions For Short Life- Cycle Products In A Closed-Loop Supply Chain ...... 52 Modelingvalue At Risk (Var) Policies For Two Parallel Flights Owned By The Same Airline ...... 53 iv

Research On Manufacturer’s Aftermarket Servicecompetition Strategy Outside The Warranty Period ...... 54 Analysis Of Optimality And Development Of Priority Dispatching Method To Minimize Total Tardiness For Unrelated Parallel Machines Scheduling ...... 55 A Heuristic Algorism For Vehicle Routing Problem With Outsourcing Options ...... 56 An Approach To Improve Routing Decisions In Queueing Networks ...... 57 Modelling Revenue Sharing Contract Of Fresh Vegetables Between Urban Farming Cooperation And Retailers ...... 58 Production And Transportation System Flexibility Modeling ...... 59 Model Of Crop Production Planning Considering Crop Rotation...... 60 A Lower Bound Analysis For The Flowhop Scheduling Problem With Minimization Of Makespan ...... 61 Development Of Particle Swarm Optimization Algorithm To Optimize Dispersion Batch On ...... 62 A Production Process ...... 62 Simulation Model To Optimize The Supply Chain Configuration For Mitigating Risks With Common Parts ...... 63 Research On Manufacturer’s Price And Service Strategy Under Graymarket Considering Government Supervision ...... 64 On-Line Vehicle Routing Problem With Heterogeneous Vehicles, Time Windows And Road Network Constraints ...... 65 Vehicle Scheduling And Routing At A Cross-Docking Warehouse: A Meta-Heuristic-Based Approach ...... 66 Setting Price And Inventory For Retail Chains Of Fashion Apparel...... 67 Strategic Idling And Dynamic Scheduling In An Open-Shop Service Network ...... 68 Shift Scheduling Model Designed To Level Workloads Of Employees ...... 69 Modified Particle Swarm Optimization For Solving Multi-Objective Limited-Wait Hybrid Flow Shop Scheduling Problem ...... 70 Organisational Challenges In Integrating Customer Collaboration Processes And Practises In The Supply Chain...... 71 Collaborative Production Distribution Network Model For Australian Smmes: Research Challenges For Their Competitiveness ...... 72 Supply Chain Collaboration For Ensuring Retail Product Availability At Glaxosmithkline 73 Supplier-Customer Collaboration In Embedded Systems Engineering Processes – Principles And Case Study ...... 74 framework For Collaboration Among Portstakeholders: Literature Review And Case Study ...... 75 A Case Study On Process Mining Implementation In Modelling Supply Chain Business Process: A Lesson Learnt ...... 76 Information System Challenges In Managing Asset Integrity Of Petroleum Production Facilities ...... 77 Mobile-Apps Development For Biodiesel Distribution Tracking System And Supply Chain Monitoring ...... 78 Raspberry Pi And Sensor Networking For African Health Supply Chains ...... 79 Reinventing The Use Of Vehicle Telematics Data: Using Multivariate Adaptive Regression Splines Model For Predicting The Container Terminal’s Service Rate ...... 80 v

Developing Inventory Management In Hospital ...... 81 Integration Of Real-Time Demand Information And Spare Parts Distribution Planningfor The Optimization Of Spare Parts Supply In After-Sales Service Networks ...... 82 Inventory Model For Food Products Considering Preservation Cost To Reduce Quality Loss ...... 83 Increasing The Warehouse Productivity Throughprocess Improvement ...... 84 The Bullwhip Effect In Retail Supply Chains: ...... 85 An Analysis Of Stock Ordering Policy And Ict Logistics Systems ...... 85 Product-Service Module Mix Optimization For Product-Service System With Multi Segment ...... 86 A Product And Service Design Method ...... 86 Analysing New Product Development Process In Company X Using Lean Product Development Approach ...... 88 Claims, Complaints And Innovation As Alternative Product Attributes In Qfd-Kano’s Model Categorization ...... 89 Problem Prevention Method For Product Designs Based On Predictive Technical Evaluation: A Study Of Bolt-Loosening Mechanisms In Automobiles ...... 90 Creating A Vehicle Proportion, Form, And Color Matching Model ...... 91 The Development Of Usability Measurement Model Considering Cognitive And Affective Aspects And Cultural Dimension As Moderation: A Research Framework ...... 92 Process Re-Engineering Of Inflight Service Cart Door Assembly ...... 94 The Potential For Bio-Ethanol Production In The Kwa-Zulu Natal Province, South Africa 95 Managing Risk In Supply Networks: A Conceptual Investigation ...... 96 Managing Risk In Supply Chain: A Framework For Supply Chain Risk Mitigation Decision- Making ...... 97 Managing Risk In Supply Chain: A Framework For Supply Chain Risk Mitigation Decision- Making ...... 98 Modelling And Managing Supply Chain Risks: A Case Study In An Indonesian Manufacturing Company ...... 99 The Supply Chain Uncertainty And Risk Measurement Development ...... 100 A Study On Knowledge-Rich Critical Elements Within Sri Lankan Manufacturing Supply Networks ...... 101 Relationship Between Knowledge Management Process Capabilities And Supply Chain Relations Quality...... 102 A Framework For Management Of Aircraft Engineering Knowledge ...... 103 Big Data Analytics In Supply Chain Management: Trends And Related Research ...... 104 Factors Affecting The Use Of First Level Of Hospital Information Technology In Surabaya ...... 105 An Integrated Modeling Of Human, Machine, And Environmental Aspects In Supply Chain Planning And Operations Using Fuzzy Logic ...... 106 Human Error Before And After The Implementation Of Mechanized Sorting System In A Distribution Center ...... 107 Human Factors Affecting Material Handling In A Warehouse ...... 108 Workforce Scheduling Model Considering Ergonomic Factors ...... 109 Crude Oil Supply Chain Optimization At Pt Pertamina Indonesia ...... 110 A Process-Based Model For Product Returnsservices In An E-Tailing Environment ...... 111 vi

Relocation Of Car Manufacturers:...... 112 Wise Solution Or Costly Setback? ...... 112 Mapping The Sources Of Export Competitive Advantage In Wood Furniture Value Chain ...... 113 Improvements In Movement Of Empty Containers The Case Of The Port Of Gothenburg114 Lean Knowledge Transfer - A Case Studies Analysis ...... 115 Purchasing Management And Reducing The Use Of Express Delivery In Offshore Petroleum Logistics ...... 117 Purchasing Social Responsibility Activities In Malaysia: Labour And Health & Safety .. 118 Rearranging Criteria For Supplier Selection : A Study On A Newly Acquired Manufacturing Company ...... 119 Sourcing Strategy For Maintenance Support Services In Petroleum Production Facilities 120 Research Design For Industrial Service Studies ...... 122 A New Framework Of Value Chain Thinking...... 123 For Business Development ...... 123 System Dynamics Approach For Eco-Tourism Development: An Indonesian Case In Malang Regency ...... 124 Smes Competitiveness Analysis In The Global Environment Using An Integrated Swot- Porter’s Five Forces Model: A Case Study Of Australian Manufacturing Smes ...... 125 Location Problem In A Supply Chain Network With ...... 126 Inbound And Outbound Product Flows ...... 126 Genetic Algorithm For Solving A Helicopter Routing Problem ...... 127 Eco-Indicator 99 Practical Concepts Of Modelling Damage Impacts To Environment - Application To The Preparation Process Of Hexagonal Mesoporous Silica Material ...... 128 Eco-Indicator 99 Theoretical Concepts Of Modelling Damage Impacts On Environment - Application To The Preparation Process Of Hexagonal Mesoporous Silica-Supported Platinum Nanophase (Hms-Pt) Material ...... 129 Synthesising Hexagonal Mesoporous Silica-Supported Platinum Nanophase (Hms-Pt) Material Prototype And Types Of Emissions In The Preparation Process ...... 130 Effective Ways On How To Develop Best Practices For Visualizing Supply Chain Dashboards Kpi’s ...... 131 Ameliorating Corporate Performance: By Designing A Resilient Supply Chain Measuring System ...... 132 Effects Of Traffic Congestion On National Gross Domestic Product (Gdp) In Gauteng Province...... 133 Improving Postal Services In Limpopo By Applying Bio-Mimicry ...... 134 Applying Bio-Mimicry In Commerce And Industry ...... 135 Cleaner Production Perspective In Lubricants Blending And Usage ...... 136 Total Quality Management (Tqm) Tool In Improving Competitiveness ...... 137 Reliability Centred Maintenance (Rcm) In Improving Plant Availability Performance .... 138

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Welcome Speech from Conference Chair

Welcome to the sixth International Conference on Operations and Supply Chain Management. As you all know, this year conference brings a very important theme “Making the world more comfortable, sustainable, and socially responsible: the role of operations and supply chain management “. It is this theme that motivates us to work and contribute to the world. Operations and Supply Chain Management has always been aimed toward better processes, better working environments, more efficient use of resources, more respect toward human life as well as the environment.

This conference is the continuation of the five earlier conferences which were held in Bali (2005), Bangkok (2007), Malaysia (2009), Maldives (2011), and India (2013). This year we are able to attract submissions of more than 200 abstracts from about 35 countries. We did the review in two stages: abstract submission and full paper submission. The number of papers scheduled for presentation is 124 which represent authors from 28 countries. In addition, we also have three keynote speaker sessions and one workshop for young academics and doctoral students. Also, this is the first time we run a forum for PhD program director / coordinator. We are very proud with the quality of submissions and the internationalization of the conference.

It is also our aim to enhance the OSCM Forum with the formation of Board Members. The Board Members will set the direction of the forum, give suggestions for organization of future conferences, and supporting the publication of the associated journal “Operations and Supply Chain Management” which is now in its 7th year. It is also our first time giving awards to best reviewers and best papers. Without neglecting the roles of other reviewers and other authors, our aim is to give appreciation to excellent works and contribution of the conference participants.

Finally, I would like to thank all parties that have contributed to this conference. First of all, I would like to thank the three keynote speakers: Professor René B.M. de Koster from Rotterdam School of Management, Erasmus University, The Netherlands; Professor Mahender Singh, the CEO/Rector of Malaysia Institute for Supply Chain Innovation (MISI); and Walter Kuijpers from Deloitte Consulting’s SE Asia. My sincere thanks also goes to Professor Suresh Sethi from University of Texas at Dallas, USA and Professor Yossi Aviv from Olin Business School, Washington University, USA who both will give talks in the workshop for doctoral students and emerging scholars. I would also like to thank the supports and participation of the supporting organizations and sponsors. The support from our institution (Institut Teknologi Sepuluh Nopember) is also instrumental to the success of this conference. Finally, to all committee members I would like to thank for the hard work, without which this conference would never be a success. To all participants, have a nice conference and we look forward to your continuing support to OSCM. viii

Bali, December 2014

Professor Nyoman Pujawan, Ph.D, CSCP Conference Chair

Welcome Message from Rector of ITS Surabaya

On behalf of the Institut Teknologi Sepuluh Nopember (ITS), I welcome the participants to this year Operations and Supply Chain Management (OSCM) Conference. I am truly proud that the Laboratory of Logistics and Supply Chain Management in the Department of Industrial Engineering has managed to organize such a prestigious conference, attracting delegates from various countries. Being Lab-Based Education, this conference is one of the strategies to achieve our vision as a world class research university.

This year conference theme: “making the world more comfortable, sustainable, and socially responsible: the role of operations and supply chain management” is very timely. This conveys a strong message that all of our activities to improve the companies’ performance must also consider the quality our environment and social development as well. I believe, with such diverse and large participation, this conference will serve as an effective platform for academics, practitioners, and students to learn, share, and exchange their expertise and insights, especially on how the operations and supply chain management could contribute to maintain the sustainability of our planet.

I congratulate and thank Prof. Nyoman Pujawan, the conference chair and his team from the Department of Industrial Engineering, who have worked tirelessly to make this OSCM 2014 conference possible.

I sincerely hope that this conference will facilitate the establishment of international joint research programs and become a forum for the exchange of research ideas. I wish the conference a grand success.

Surabaya, December 2014

Professor Dr. Triyogi Yuwono Rector of ITS

Conference Committee

Organizing Committee

General Chair: Nyoman Pujawan, ITS, Indonesia General Co-Chair: Kamrul Ahsan, Victoria University, Australia Program Chair: Imam Baihaqi, ITS, Indonesia Program Chair: Duangpun Kritchanchai, Mahidol University, Thailand Arrangement Chair: Iwan Vanany, ITS, Indonesia Arrangement Chair: Dyah Santhi Dewi, ITS, Indonesia Conference Secretary: Naning Wessiani, ITS, Indonesia Conference Secretary: Dewanti Anggrahini, ITS, Indonesia

International Committee:

 G.V.R.K.Acharyulu, University of Hyderabad, India  The Jin Ai, University of Atmajaya, Jogjakarta, Indonesia  Hasan Akpolat, University of Technology, Sydney, Australia  Benita Beamon, University of Washington, USA  Andi Cakravastia, Bandung Institute of Technology, Indonesia  Paul Childerhouse, Massey University, New Zealand  Ajay Das, Baruch College, The City University of New York, USA  René De Koster, Erasmus University, The Netherlands  Per Engelseth, Molde University College, Norway  Javad Feizabadi, Malaysia Institute for Supply Chain Innovation, Malaysia  Dimitris Folinas, Alexadrion Technological Educational Institute of Thessaloniki, Greece  M. Abdul Hoque, University of Brunei Darussalam  Takashi Irohara, Sophia University, Japan  Sakun Boon-Itt, Thammasat University, Thailand  Sanjay Jharkharia, Indian Institute of Management Kozhikode, India  Ferry Jie, RMIT University, Australia  Kap Hwan Kim, Pusan National University, Korea  Reza Lashkari, University of Windsor, Canada  M. Marimin, Bogor Agricultural University, Indonesia  Bimaraya Metri, International Management Institute – New Delhi, India  Rajesh Piplani, Nanyang Technological University, Singapore  Daniel Prajogo, Monash University, Australia  T. Ramayah, Universiti Sains Malaysia  Ahmad Rusdiansyah, Sepuluh Nopember Institute of Technology (ITS), Indonesia xi

 Sunanda Sangwan, Shantau University Business School, China  Budi Santosa, Sepuluh Nopember Institute of Technology (ITS), Indonesia  Ruhul Amin Sarker, University of New South Wales, Australia  Anders Segerstedt, Luleå University of Technology, Sweden  Togar Simatupang, Bandung Institute of Technology, Indonesia  Himanshu Shee, Victoria University, Australia  Harm-Jan Steenhuis, Eastern Washington University, USA  Katsuhiko Takahashi, Hiroshima University, Japan  Armagan Tarim, Hacettepe University, Turkey  Benny Tjahjono, Cranfield University, UK  Kun-Jeng Wang, National Taiwan University of Science and Technology, Taiwan  Hui Ming Wee, Chung Yuan Christian University, Taiwan  Gede Agus Widyadana, Petra Christian University, Indonesia  Joel Wisner, University of Nevada, Las Vegas, USA  Hartanto Wong, Aarhus University, Denmark  Sha’ri Mohd Yusof, Universiti Teknologi Malaysia  Yahaya Yusuf, University of Central Lancashire, UK

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Conference Sponsor

PT. Semen Indonesia (Persero) Tbk.

SKK Migas Chevron Indonesia

Total E&P Indonesie

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Sponsor Profile

Chevron Indonesia Chevron is one of the world’s leading integrated energy companies. Our success is driven by our people and their commitment to get results the right way—by operating responsibly, executing with excellence, applying innovative technologies and capturing new opportunities for profitable growth. We are involved in virtually every facet of the energy industry. We explore for, produce and transport crude oil and natural gas; refine, market and distribute transportation fuels and lubricants; manufacture and sell petrochemical products; generate power and produce geothermal energy; provide renewable energy and energy efficiency solutions; and develop the energy resources of the future, including research into advanced biofuels. Company Roots: We trace our beginnings to an 1879 oil discovery at Pico Canyon, north of Los Angeles, which led to the formation of the Pacific Coast Oil Co. That company later became Standard Oil Co. of California and, subsequently, Chevron. We took on the name Chevron when we acquired Gulf Oil Corporation in 1984, which nearly doubled our worldwide proved crude oil and natural gas reserves. Our merger with Gulf was then the largest in U.S. history.Another major branch of the family tree is The Texas Fuel Company, formed in Beaumont, Texas, in 1901. It later became known as The Texas Company and, eventually, Texaco. In 2001, our two companies merged. The acquisition of Unocal Corporation in 2005 strengthened Chevron’s position as an energy industry leader, increasing our crude oil and natural gas assets around the world. Global Scope: Our diverse and highly skilled global workforce consists of approximately 64,500 employees, including more than 3,200 service station employees. In 2013, Chevron’s average net production was nearly 2.6 million oil-equivalent barrels per day. About 75 percent of that production occurred outside the United States. Chevron had a global refining capacity of 1.96 million barrels of oil per day at the end of 2013. Our marketing network supports retail outlets on five continents. Technology and Emerging Energy : We focus on technologies that improve our ability to find, develop and produce crude oil and natural gas from conventional and unconventional resources.We also invest in the development of emerging energy technologies, such as finding better ways to make nonfood-based biofuels, piloting advanced solar technology for our operations and expanding our renewable energy resources. Environment and Safety: As a company and as individuals, we take great pride in contributing to the communities where we live and work. We also care about the environment and are proud of the many ways in which our employees work to safeguard it.Our persistent efforts to improve on our safe work environment continue to pay off. In

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2013, we achieved world-class performance in the days-away-from-work metric for both Upstream and Downstream operations. Our Work: We recognize that the world needs all the energy we can develop, in every potential form. That’s why our employees work to responsibly develop the affordable, reliable energy the world needs.

PT. Semen Indonesia (Persero) Tbk.

The Company inaugurated in Gresik on December 7 Agustus1957 by the first President with an installed capacity of 250,000 tonnes of cement per year, and installed capacity in 2013 reach 30 million tons/year. On July 8, 1991 the Company's shares listed on the Jakarta Stock Exchange and Surabaya Stock Exchange (now Indonesia Stock Exchange) and is the first state- owned companies to go public by selling 40 million shares to the public. The composition of the shareholders at the time: State of RI 73% and 27% people.In September 1995, the Company made a Rights Issue I (Right Issue I), which alter the composition of share ownership to the State of RI 65% and 35% people. On June 15 September 1995 by PT Semen Gresik consolidate with PT Semen Padang and PT Semen Tonasa. Total installed capacity of the Company at the time of 8.5 million tons of cement per year.On September 17, 1998, the State of RI off its stake in the Company by 14% through an open offer, which was won by CEMEX S. A. de C. V., a global cement company based in Mexico. Shareholding composition changed to Republic of Indonesia 51%, the 35%, 14% and Cemex. Then on 30 September 1999 shareholding changed to: The Government of the Republic of Indonesia 51.0%, 23.4% and the 25.5% Cemex.On July 27, 2006, there was the sale of shares of Cemex Asia Holdings Ltd.. to Blue Valley Holdings PTE Ltd.. so the shareholding composition changed to 51.0% RI State Blue Valley Holdings PTE Ltd.. 24.9%, 24.0%, and the community. In late March 2010, Blue Valley Holdings PTELtd, sold all of its shares through a private placement, so the composition of the shareholders of the Company changed to 51.0% Government 48.9% and the public.Dated December 18, 2012 was a historic moment when the Company signed a final transaction acquisition of 70 percent stake in Thang Long Cement, the leading cement companies of Vietnam has a production capacity of 2.3 million tons / year. Acquisition of Thang Long Cement Company is also to make the Company's status as the first state-owned multi-national corporation. Has established its position as the largest cement producer in Southeast Asia with a capacity up to the year 2013 amounted to 30 million tonnes per year.  Complete the construction of a cement factory unit  The acquisition of Thang Long Cement Joint stock Company (TLCC), in Viet Nam.  Became Strategic Holding Company and changed its name to PT Cement Indonesia (Persero) Tbk.

Transformation of the Company as an effort to improve the performance, after the application of Functional Holding through synergy of their respective companies competence both in operational and marketing field. Improve the quality of management of the Company's organization and conduct more intensive communication with stakeholders in each operating company.

Total E&P Indonesie

Energy is vital to economic development and improved standards of living. Wherever it is available, energy is helping to drive progress, but sustainability requires changes in the way that it is used and managed. This conviction shapes everything we do. With operations in more than 130 countries, we are a top-tier international oil company and a world-class natural gas operator, refiner, petrochemical producer, and fuel and lubricant retailer. Our 100,000 employees leverage their globally acknowledged expertise so that together they can discover, produce, refine and distribute oil and gas to provide products and services for customers worldwide. We are also developing energies that can partner oil and gas — today, solar energy and tomorrow, biomass. As a responsible corporate citizen, we focus on ensuring that our operations consistently deliver economic, social and environmental benefits. A Market Leader in Our Areas of Expertise Exploration & Production is responsible for our oil and natural gas exploration, development and production activities in more than 50 countries.Gas & Power unlocks the value of our natural gas assets. Its capabilities span the liquefied natural gas chain, from liquefaction to shipping and regasification, as well as natural gas marketing. Refining & Chemicals is a major production hub, with expertise covering refining, petrochemicals and specialty chemicals. We rank as one of the world's ten largest integrated producers. Trading & Shipping sells our crude oil production, supplies our refineries with feedstock, charters the vessels required for those activities and is involved in derivatives trading. We are a leading global trader of oil and petroleum products.Marketing & Services designs and markets a broad array of refined products, including automotive fuel and specialty products such as LPG, heating and heavy fuel oil, asphalt, lubricants and special fluids. It also provides services to consumers and to the transportation, housing and manufacturing industries. We are a leading marketer in Western Europe4 and the top marketer in Africa.4 New Energies is helping us to prepare the energy future by developing our expertise in two core renewable energies, solar and biomass.

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Industrial Engineering ITS

Department of Industrial Engineering (IE-ITS) as one of the biggest departments in ITS stand as study program in 1985. IE-ITS has been successful in its efforts to develop its education programs, this is reflected in the accreditation gained since 1999 to the present (A). Number of alumni is more than 1000 people spread across various sectors of national and international industry, and the number of new students is about 200 people per year, supported by qualified teaching staff and have high competence and qualifications in their respective fields. IT-ITS to be one of the best industrial engineering department in Indonesia has more than 30 faculty members with diverse areas of expertise such as ergonomics, system manufacturing, sustainable manufacturing, optimization, simulation, data mining, logistics, supply chain, quality management and performance measurement makes the Department of Industrial Engineering (IE-ITS) as the primary barometer of “Industrial Engineering” in Indonesia. ITS open undergraduate (S1) and graduate (S2 and S3) programs. The programs are also open to international students delivered in English. Some college participants both undergraduate and graduate are from various countries such as Iraq, Zimbabwe, Papua New Guinea, Thailand and Myanmar. Vision IE-ITS aims to be an institution of higher education in Industrial Engineering with excellent international reputation and capable of supporting sustainable national development. Mission  To implement educational programs and research activities in the field of Industrial Engineering with international reputation.  To provide services relevant to the needs of industry and communities to support sustainable national development.  To build a cooperation network for development of educational and research activities to empower human resources and all resources owned.  To conduct research and development in the field of science and Industrial Engineering with quality and contribution to the advancement of science and technology. Purposes  To produce qualified graduates of Industrial Engineering relevant to the needs of industry and community and develop activities of designing, engineering, improvement, and installation.  To produce research and development in scientific fields of Industrial Engineering with quality and contribution to the advancement of science and technology.  To apply the concepts, methods and techniques of research results within the professional scope of Industrial Engineering. Program Education Objectives 1. To be able to formulate problem in industrial system, either micro, mezzo or macro level, to propose alternative solutions

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2. To comprehend and innovatively perform theoretical improvement in Industrial Engineering discipline by focusing on system approach to design, improve and install an integrated system 3. To be able to manage research and development activities in industrial engineering discipline based on academic norms fairly and responsibly and to be able to communicate ideas and research results effectively both in Bahasa Indonesia and English in order to achieve national and international recognition. 4. To poses professional attitude and conduct as an individual and/or a team member in working environment 5. To be able manage his/herself and to behave professionally in working environment 6. To be able to cooperate in team proportionally in accordance to working demand. 7. To be able to communicate ideas systematically, both oral and written in Bahasa Indonesia or English. 8. To have sensitivity to environmental and sustainability issues and to accommodate those issues in performing analysis, design, dan decision making. 9. To be able to be creative and innovative in some aspects of living, especially to those with relation to his/her profession.

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OSCM Journal

Operations and Supply Chain Management

An International Journal

http://journal.oscm-forum.org Published since 2008.

Operations and Supply Chain Management: An International Journal (OSCM) publishes high quality refereed articles in the field of operations and supply chain management. The journal invites original contributions that present modeling, empirical, review, and conceptual works. To enable maximum dissemination, the articles are freely accessible through the internet to anybody and a limited printed version will be available at cost.

Listing / Indexing This journal is listed / indexed in:  Cabells Journal Directory.  Journal list of Finnish Universities  Australian Business Deans Council (ABDC) Journal list  The Norwegian Publication Database "Publiseringskanaler"  Google scholars  Index Copernixus

Submission of Manuscripts All manuscript should be submitted to the journal editor electronically in an MS word file to the Editor-in-Chief at: [email protected].

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Keynote Speakers

Keynote Speech I: Professor Dr. René B.M. de Koster, Rotterdam School of Management, Erasmus University, The Netherlands. “The impact of behavior on operational performance”.

Dr. René B.M. de Koster is professor of Logistics and Operations Management at Rotterdam School of Management, Erasmus University since 1995. Before that, he worked as a consultant. His research interests are warehousing, container terminal, retail, and behavioural operations. He is author/editor of 8 books and over 130 papers in books and journals like Production and Operations Management, Journal of Operations Management, Transportation Science, IIE Transactions, European Journal of Operational Research. He is in the editorial boards of journals like OR, JOM, TS (SI editor), IJOPM (SI editor) and other academic journals, member of several international research advisory boards (ELA: European Logistics Association, BVL, AIRL, University of Pisa, chairman of Stichting Logistica, Smartport, and founder of the Material Handling Forum. His research has won several awards, like the IIE Transactions best paper award (2009), JOM best paper finalist (2007), AoM best paper finalist (2013), ERIM impact award (2013).

Keynote Speech II: Walter Kuijpers, Deloitte Consulting’s SE Asia “Journey to supply chain reengineering – opportunities and challenges”

Walter is a Senior Manager at Deloitte Consulting South East Asia responsible for Supply Chain Management within the Strategy & Operations service line. He earned his BSc. Engineering Degree in Analytical Chemistry from the Dutch Hanzehogeschool in Groningen (Netherlands) followed by a Post-Academic Degree in Distribution Logistics. He has over 15 years’ experience with a balanced mix of consulting and industry experience in Supply Chain Management covering Inventory Management, Collaborative Planning & Forecasting, Logistics Operations, and Sales & Distribution. He has worked across Consumer Business, Hi-Tech, Telecommunications and Energy & Resources industries in supply chain project delivery, sales and P&L roles across Europe, Australia, Japan, India, China and South East Asia. xx

Keynote speech III: Professor Dr. Mahender Singh, CEO/Rector of Malaysia Institute for Supply Chain Innovation (MISI)

Dr. Mahender Singh is the CEO/Rector of the newly launched Malaysia Institute for Supply Chain Innovation (MISI) since its inception in March 2011. MISI is a joint initiative between the Massachusetts Institute of Technology, USA (MIT) and the Government of Malaysia – www.misi.edu.my. He also holds the position of the Executive Director of the MIT Global SCALE Network in Asia at the Center for Transportation and Logistics at MIT, where he has been working for the past 10 years. Dr. Singh has over 18 years of experience in the field of supply chain management. Before returning to academia in 2003, he worked with a leading consulting firm to implement innovative global supply chain planning solution for Fortune 50 companies. He has spent considerable time in various countries working on supply chain challenges. Dr. Singh’s research and teaching is focused on operations and supply chain management, with particular interest in exploring the underlying structure of complex supply chains. His current research efforts span the domain of supply chain strategy, risk management and healthcare supply chains.His research has been published in leading academic journals such as Management Science and IIE Transactions, as well as Sloan Management Review and Supply Chain Management Review. Dr. Singh has an Undergraduate degree with Honors in Physics. He earned his Masters degree in Logistics from MIT and received his Ph.D. in Management Science from the University of Tennessee, Knoxville. In addition, he has a Masters degree in Statistics and is a certified Cost Accountant.

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Workshop for Doctoral and Emerging Scholars

Speaker I: Professor Dr. Suresh Sethi, University of Texas at Dallas, USA

Suresh P. Sethi is Eugene McDermott Professor of Operations Management and Director of the Center for Intelligent Supply Networks at The University of Texas at Dallas. He has written 7 books and published nearly 400 research papers in the fields of manufacturing and operations management, finance and economics, marketing, and optimization theory. He teaches a course on optimal control theory/applications and organizes a seminar series on operations management topics. He initiated and developed the doctoral programs in operations management at both University of Texas at Dallas and University of Toronto. He serves on the editorial boards of several journals including Production and Operations Management and SIAM Journal on Control and Optimization. He was named a Fellow of The Royal Society of Canada in 1994. Two conferences were organized and two books edited in his honor in 2005-6. Other honors include: IEEE Fellow (2001), INFORMS Fellow (2003), AAAS Fellow (2003), POMS Fellow (2005), IITB Distinguished Alum (2008), SIAM Fellow (2009), POMS President (2012).

Speaker II: Professor Dr. Yossi Aviv, Olin Business School, Washington University, USA

Professor Aviv, Dan Broida Professor of Operations & Manufacturing Management, develops and applies operations research models and methods to study problems related to supply chain management and revenue management. His current research focuses on strategic inventory positioning in distribution networks, collaborative forecasting, and dynamic pricing. He holds several editorial positions, and serves as a Department Editor (Area of Operations Management) for Management Science, the flagship journal in his field. Aviv has consulted in the defense and electronics industries. At the Olin School of Business, he has been teaching courses on quantitative decision modeling, operations management, and supply chain management, at the undergraduate, MBA, PMBA, EMBA, and Ph.D. levels.

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List of Participants

Name Institution Country Achmad Room The State Islamic Univeristy of Sunan Ampel Indonesia Fitrianto Adewole Akanni Gillette UK Ltd United Kingdom

Adi Budipriyanto Sepuluh Nopember Institute of Technology Indonesia Agustina Eunike Brawijaya University Indonesia Ahmad Abareshi RMIT University Australia Ahmad Jafarnejad University of Tehran Iran Ahmad Rusdiansyah Sepuluh Nopember Institute of Technology Indonesia Alan Chee Wee Tay School of Business, SIM University Singapore School of Science and Technology, SIM Alan Teik Cheng Lim Singapore University Alassane Ballé Ndiaye Université Libre de Bruxelles Belgium Alexis Nsamzinshuti Université Libre de Bruxelles Belgium Amak Mohamad Yaqoub Airlangga University Indonesia Amal S. Kumarage University of Moratuwa Sri Lanka Andhy Hermawan Monash University Australia Andi Cakravastia Bandung Institute of Technology Indonesia Andre R Daud Padjajaran University Indonesia Andreas C. Soteriou University of Cyprus Cyprus

Andries Stam Erasmus University Netherlands Andrzej Rzeczycki University of Szczecin Poland

Anggriani Profita Mulawarman University Indonesia Anna-Mara Schön University of Applied Sciences Fulda Germany Antti Salminen Lappeenranta University of Technology Finland Anup Pradhan University of Johannesburg South Africa Asep Ridwan Universitat Duisburg-Essen Germany Attila Turi Politehnica University from Timisoara Romania Bartholomeus Indonesian Local Board for Disaster Management Indonesia Tandigala in Central Sulawesi Province Basuki Widodo Sepuluh Nopember Institute of Technology Indonesia Benny Tjahjono School of Management, Cranfield University United Kingdom xxiii

Bernd Noche Duisburg-Essen University Germany

Bin Dan Chongqing University China Blanka Tundys University of Szczecin Poland Blen Delelegne Narvik University College Norway Bruno de Sousa Alves Federal University of Santa Carina Brazil

Budi Santosa Sepuluh Nopember Institute of Technology Indonesia Budisantoso Wirjodirdjo Sepuluh Nopember Institute of Technology Indonesia Bustanul Arifin Sepuluh Nopember Institute of Technology Indonesia National Taiwan University of Science and Candra Bachtiyar Taiwan Technology Carles Sitompul Parahyangan Catholic University Indonesia Carlos Ernani Fries Federal University of Santa Carina Brazil Charles Mbohwa University of Johannesburg South Africa Charoenchai King Mongkut’s University of Technology Khompatraporn Thonburi Thailand Chi-Leung Chu National Chiayi University Taiwan Christakis University of Cyprus Cyprus Charalambous Dalvio Ferrari Tubino Federal University of Santa Carina Brazil Danang Setiawan Sepuluh Nopember Institute of Technology Indonesia

Dewanti Anggrahini Sepuluh Nopember Institute of Technology Indonesia Dewie Saktia Ardiantono Sepuluh Nopember Institute of Technology Indonesia Didik Wahjudi Petra Christian University Indonesia Dina Natalia Prayogo University of Surabaya Indonesia Dino Rimantho Pancasila University Indonesia

Dmitry Krass Canada University of Toronto Canada Dr. Nadeem Ehsan CASE Pakistan Duangpun Kritchanchai Mahidol University Thailand Dwi Agustina Nanyang Technological University Singapore

Dwi Purnomo Padjajaran University Indonesia Dyah Santhi Dewi Sepuluh Nopember Institute of Technology Indonesia

Eddy Renaldi Padjajaran University Indonesia Effi Latiffianti Sepuluh Nopember Institute of Technology Indonesia

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Eko Liquiddanu University of Sebelas Maret Indonesia

Eko Nurmianto Sepuluh Nopember Institute of Technology Indonesia Elimawaty Rombe Tadulako University Indonesia Ellisha Nasruddin Universiti Sains Malaysia Malaysia Endang Retno Wedowati Wijaya Kusuma Surabaya University Indonesia Eric van Heck Erasmus University Netherlands Erna Mulyati Sepuluh Nopember Institute of Technology Indonesia Erwin Widodo Sepuluh Nopember Institute of Technology Indonesia Eugene-Eu-Chun Lee Universiti Sains Malaysia Malaysia Farzad Bahrami University of Tehran Iran Farzeen Jaswal University of Greenwich United Kingdom Febrianus D. Bandung Institute of Technology Indonesia Wibisono Femi Yulianti Bandung Institute of Technology Indonesia Ferry Jie RMIT University Australia Fikhi Adrian Bandung Institute of Technology Indonesia

Fiqihesa Putamawa Sepuluh Nopember Institute of Technology Indonesia Friska Hanna Tarida Sepuluh Nopember Institute of Technology Indonesia Gama Harta Nugraha Nur Rahayu STIMIK ESQ Indonesia Geevaneswary Saththasivam Universiti Sains Malaysia Malaysia George C. Hadjinicola University of Cyprus Cyprus

Gilles Goncalves Univ Lille Nord de France France Glauco G. M. P. da Federal University of Santa Carina Brazil Silva Govardhan Rao Banna School of Business, SIM University Singapore Gul Pervez Concordia University Canada University of South Australia, Sebelas Maret Gusti Fauza Australia/Indonesia University Guy Maltais Université de Sherbrooke Canada Haiyue Zhang Chongqing University China Hanim Maria Astuti Institut Teknologi Sepuluh Nopember Indonesia

Hari Prasetyo Universitas Muhammadiyah Surakarta Indonesia Hasan Akpolat University of Technology Sydney Australia

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Heidi Piili Lappeenranta University of Technology Finland

Heru Prastawa Sepuluh Nopember Institute of Technology Indonesia Himanshu K. Shee Victoria University Australia

I Ketut Gunarta Sepuluh Nopember Institute of Technology Indonesia I Nyoman Pujawan Sepuluh Nopember Institute of Technology Indonesia Ibnu Hisyam Sepuluh Nopember Institute of Technology Indonesia Ignatio Madanhire University of Johannesburg South Africa Ika Sari Wahyuni-TD International Islamic University Malaysia Malaysia Imam Baihaqi Sepuluh Nopember Institute of Technology Indonesia Ioannis Manikas University of Greenwich United Kingdom Ishardita Pambudi Tama Brawijaya University Indonesia Ivan Varela Rozados Cranfield University United Kingdom

Iwan Vanany Sepuluh Nopember Institute of Technology Indonesia Jianfu Wang Canada University of Toronto Canada Joakim Widstrand Chalmers University of Technology Sweden

Joey-Soo-Yee Phuah Universiti Sains Malaysia Malaysia Johannes B. Mapokgole University of Johannesburg South Africa John L. Hopkins Swinburne University of Technology Australia Joko Supriyanto PT. Telkom Indonesia Indonesia Judy McKay Swinburne University of Technology Australia Juha Vanhanen Oy M. Haloila Ab Finland Jukka Hemilä VTT Technical Research Centre of Finland Finland Junior Mabiza-ma- Mabiza University of Johannesburg South Africa Jyri Vilko Lappeenranta University of Technology Finland Kai Hashimoto Waseda University Japan

Kakuro Amasaka Aoyama Gakuin University Japan Kamrul Ahsan Victoria University Australia Karina Diandra S. Padjajaran University Indonesia

Kazi Anowar Hussain World University Bangladesh Bangladesh Kazuho Yoshimoto Waseda University Japan

Kazuki Fujita Aoyama Gakuin University Japan xxvi

Kazuki Yamada Waseda University Japan Kent Lumsden Chalmers University of Technology Sweden King Mongkut’s University of Technology Krit Lerdleuchachai Thonburi Thailand Kuntoro Boga Andri Assessment Institute of Agricultural Technology Indonesia Kusnandar Padjajaran University Indonesia

L.D.C.S. Layangani University of Moratuwa Sri Lanka Laksito Purnomo Universitas Atma Jaya Yogyakarta Indonesia Lee E J Styger University of Wollongong Australia Lene Edvardsen Narvik University College Norway

Leonardo Quintana Pontificia Universidad Javierana Bogota Colombia Liliane Streit-Juotsa University of Applied Sciences Fulda Germany Linda Ingebrigtsen Narvik University College Norway Locadia Linda Sepuluh Nopember Institute of Technology Indonesia Tombido Loo Saw Khuan Wawasan Open University Malaysia Lucia Diawati Bandung Institute of Technology Indonesia M. Iman Santoso Duisburg-Essen University Germany Mads Løkås Narvik University College Norway Mahendrawathi ER Institut Teknologi Sepuluh Nopember Indonesia

Manik Mondal World University Bangladesh Bangladesh Maria Anityasari Sepuluh Nopember Institute of Technology Indonesia

Maria Widyarini Parahyangan Catholic University Indonesia Marian Liviu Mocan Politehnica University from Timisoara Romania Markus Hartono University of Surabaya Indonesia Marlene Carlsen Narvik University College Norway

Martha Caro Pontificia Universidad Javierana Bogota Colombia Martin Thormann TU Dortmund University Germany Mayang Kusumawardhani University of Stavanger Norway Meditya Wasesa Erasmus University Netherlands Meinar Dyan Bandung Institute of Technology Indonesia Muslimah Merja Airola VTT Technical Research Centre of Finland Finland

Michael Wang RMIT University Australia xxvii

Michel Berthiaume Université de Sherbrooke Canada Misra Hartati UIN Suska Riau Indonesia Mohammad Khairul Islam Government Ananda Mohan College Bangladesh Mohammad Rizal University of South Australia Australia Firmansyah Mohammed Forhad Uddin BUET Bangladesh Mokh Suef Sepuluh Nopember Institute of Technology Indonesia

Molin Liu Chongqing University China Moses Laksono Singgih Sepuluh Nopember Institute of Technology Indonesia Muhamad PT. Telkom Indonesia Indonesia Muhamad Yusuf PT. Telkom Indonesia Indonesia Muhammad Asif RMIT University Brunswick Australia Muhammad Hatta Universitas 45 Surabaya Indonesia Muhammad Nashir Telkom University Indonesia Ardiansyah Muhammad Ridwan Islamic University of Indonesia Indonesia Andi Purnomo Mukund Murari Singh Schlumberger Asia Services Ltd

Mutia Parahyangan Catholic University Indonesia Naning A. Wessiani Sepuluh Nopember Institute of Technology Indonesia Nathajeera Sribhokaratha Kasembundit University Thailand Nils Andersson Chalmers University of Technology Sweden Noor Hidayat PT. Telkom Indonesia Indonesia Nur Mayke Eka National Taiwan University of Science and Taiwan Normasari Technology Nurhadi Siswanto Sepuluh Nopember Institute of Technology Indonesia Oded Berman Canada University of Toronto Canada Oki Anita Candra Dewi Sepuluh Nopember Institute of Technology Indonesia Orn-phailin Wongwaiphinij Thailand Omkarprasad S Indian Institute of Management India Vaidya Opher Baron Canada University of Toronto Canada Parama Kartika Dewa Sepuluh Nopember Institute of Technology Indonesia

Parvathi Venkatesh Mulund College of Commerce India xxviii

Patdono Suwignjo Sepuluh Nopember Institute of Technology Indonesia

Patricia Nyamekye Lappeenranta University of Technology Finland Per Engelseth Molde University College, Faculty of Logistics Norway

Prashant Barsing Indian Institute of Management India Prof. Dr. Dorit Schumann-Bölsche University of Applied Sciences Fulda Germany Prof. Prem Chhetri RMIT University Brunswick Australia Prof. Rajiv Padhye RMIT University Brunswick Australia Purnawan Adi Wicaksono Diponegoro University Indonesia Putu Dana Karningsih Sepuluh Nopember Institute of Technology Indonesia Rafed Zawawi University of Technology Sydney Australia

Rahmi Yuniarti Brawijaya University Indonesia Rajesh Piplani Nanyang Technological University Singapore Rajesri Govindaraju Bandung Institute of Technology Indonesia Rama Bhupal Reddy School of Engineering, Republic Polytechnic Singapore Kotireddy Reina Angkiriwang Sepuluh Nopember Institute of Technology Indonesia Resa Christa Nugraha Sepuluh Nopember Institute of Technology Indonesia

Rini Prasetyani Pancasila University Indonesia Rizky Ginardy Institut Teknologi Bandung Indonesia

Rohollah Ghasemi University of Tehran Iran Ronny Mardiyanto Institut Teknologi Sepuluh Nopember Indonesia Rosita Meitha Surjani University of Surabaya Indonesia Royyana Muslim Sepuluh Nopember Institute of Technology Indonesia Ijtihadie Ryota Nomura Aoyama Gakuin University Japan Safrani Nurfatiasari Padjajaran University Indonesia School of Engineering, University of South Sang-Heon Lee Australia Australia Saut Gurning Sepuluh Nopember Institute of Technology Indonesia

Saw Khuan Loo Wawasan Open University Malaysia Senator Nur Bahagia Bandung Institute of Technology Indonesia Shams Rahman RMIT University Australia

Shu San Gan Petra Christian University Indonesia

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Shunichi Ohmori Waseda University Japan Shuntaro Toyoda Aoyama Gakuin University Japan Silene Seibel State University of Santa Carina Brazil

Siska Noviaristanti Telkom University Indonesia Siti Nurminarsih Sepuluh Nopember Institute of Technology Indonesia Sorin-Ioan Maistor Politehnica University from Timisoara Romania Sri Gunani Partiwi Sepuluh Nopember Institute of Technology Indonesia Sudiyono Sepuluh Nopember Institute of Technology Indonesia Kromodihardjo Sukoyo Institut Teknologi Bandung Indonesia

Suparno Sepuluh Nopember Institute of Technology Indonesia Suprayogi Institut Teknologi Bandung Indonesia Surahman Surahman Victoria University, Politeknik Negeri Samarinda Australia

Surya Dharamdass Universiti Sains Malaysia Malaysia Suryadi Hadi Tadulako University Indonesia Sushil Kumar Indian Institute of Management India Taiwo O. Adetiloye Concordia University Canada Tarig K. Eltayeb Nour Alhadi Dhofar University Sultanate of Oman Tatenda. Chingono University of Johannesburg South Africa Tatiana Segura Pontificia Universidad Javierana Bogota Colombia Tetra Rachmawati PT. Telkom Indonesia Indonesia Tharelelo Mokgokong University of Johannesburg South Africa Thunyarat (Bam) National Institute of Development Administration Thailand Amornpetchkul Tim Walters Ahmad Dahlan University Indonesia Togar M. Simatupang Institut Teknologi Bandung Indonesia

Tomotake Kurosawa Waseda University Japan Tomy Perdana Universitas Padjajaran Indonesia

Tore Markeset University of Stavanger Norway Tota Simatupang Bandung Institute of Technology Indonesia Tri Achmadi Sepuluh Nopember Institute of Technology Indonesia

Trisna Insan Noor Padjajaran University Indonesia Tuanjai King Mongkut’s University of Technology Somboonwiwat Thonburi Thailand xxx

Udisubakti Sepuluh Nopember Institute of Technology Indonesia Ciptomulyono Vaibhav Gupta Indian Institute of Technology India

Victor Suhandi Maranatha Christian University Indonesia National Taiwan University of Science and Vincent F. Yu Taiwan Technology Vincent Li Taiwan National Chiayi University Taiwan Violeta Roso Chalmers University of Technology Sweden Virhanty Ernita Sukma P. Sepuluh Nopember Institute of Technology Indonesia Waqar Ahmed Mirza Aga Khan University Hospital Pakistan Watcharaphong Meesamut Mahidol University Thailand Winda Narulidea Sepuluh Nopember Institute of Technology Indonesia Wiwin Widiasih Sepuluh Nopember Institute of Technology Indonesia Xin Yin Chongqing University China Xiuzhou Zhang Chongqing University China Xumei Zhang Chongqing University China Yan Weng Tan School of Business, SIM University Singapore

Yanuar Tri Sulistyo Telkom University Indonesia Yash Daultani Indian Institute of Management India Yasutaka Kainuma Tokyo Metropolitan University Japan Yat-Wah Wan Taiwan National Dong Hwa University Taiwan

Yeni Sumantri Brawijaya University Indonesia Yicheng Lin Taiwan National Chiayi University Taiwan Yohei Shinkawa Waseda University Japan School of Engineering, University of South Yousef Amer Australia Australia Yuanita Handayati Institut Teknologi Bandung Indonesia

Yudi Fernando Universiti Sains Malaysia Malaysia Yuliani Dwi Lestari Bandung Institute of Technology Indonesia

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Abstracts

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TOWARDS A CONCEPTUALIZATION OF SUSTAINABLE SUPPLY CHAIN INTEGRATION

Geevaneswary Saththasivam Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, E-mail: [email protected]

Yudi Fernando Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, E-mail: [email protected]

ABSTRACT Sustainable supply chain initiatives play a significant role in achieving organization vision within the social, environmental, and economic benefits and, therefore, contributing to sustainable development of the society. Today, almost all companies operating in the market face the challenges to get the long-term stability for their business activities which should consider environment, social and economic aspects. The Sustainable supply chain integration processes provides an effective means by which costs can be reduced and customer service level improved. Sustainability in the supply chain encapsulates a number of different priorities such as environmental stewardship, conservation of resource, reduction of carbon footprint and financial savings and viability and social responsibility. Organizations that aim to become part of an extended, integrated supply network can also expect that this will require an infrastructure enabling effective information flows and streamlined manufacturing and logistics activities. An integrated supply chain framework is needed to tie the whole network together in order to reduce constant supply chain challenges such as functional issues, poor transparency of knowledge and information and the inadequate formation of appropriate customer and supplier relationships. As such, supply chain integration (SCI) plays an essential role in improving business performance. A successful integrated supply chain organization would be able to develop a competency and competitive business environment which will lead to firm sustainability. Based on a systematic review of the articles, this paper provides the conceptual framework supply chain integration to seek the business impact on firm performance. Performance drivers are identified from the literature to guide future business sustainability practices. This research will provide a better understanding and demonstration on how supply chain integration makes positive contributions to help organization achieve their firm's performanceoutcomes.

Keywords: Sustainable Supply Chain Integration, Firm Performance, Financial Performance, Supply Chain Management

A LITERATURE REVIEW ON THE CLOSED LOOP SUPPLY CHAIN AND ITS IMPACT ON THE FORWARD BULLWHIP EFFECT

Locadia L. Tombido Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Imam Baihaqi Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Nurhadi Siswanto Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia

ABSTRACT The issue of reverse supply chains has become one of great interest in most organizations particularly because of shorter product life cycles as well as environmental concerns arising from the disposal of these products after use. Furthermore, the use of some processes such as outsourcing to reduce supply chain costs has promoted the reverse supply chain through some risks such as recall. The development of products with very short product life cycles has led to the creation of an entirely new array of products at the end of the traditional forward supply chain and these include products that have failed but can be repaired or reused, products at the end of their life but still have some value, unsold and obsolete products in the retailer’s shelves and recalled products due to defects or nonconformities. These products present a value and economic opportunities at the end of the forward supply chain and to increase supply chain profits as well as reduce supply chain costs, the closed loop supply chain has been incorporated in most organizations. In this paper, a closed loop supply chain structure incorporating activities such as remanufacture, reuse and recycling is presented. The impact of the reverse supply chain on supply chain performance in the form of the forward Bullwhip effect is analyzed. Various literature addressing reverse supply chains, the bullwhip effect and the relationship between the two are reviewed to give conclusions and suggestions for future research opportunities in the area of closed loop supply chains and the Bullwhip effect. A thematic literature review, whereby literature are arranged around the topics of Bullwhip effect, returns and Bullwhip effect in closed loop supply chains is employed as a method of reviewing literature.

Keywords: Bullwhip effect, reverse logistics, closed loop supply chains, open loop supply chains

INITIAL GREEN SUPPLY CHAIN MANAGEMENT MAPPING FOR DAIRY INDUSTRY ON SMEs LEVEL

Agustina Eunike Department of Industrial Engineering, University of Brawijaya, Malang 60135 Indonesia, E-mail: [email protected]

Ishardita Pambudi Tama Department of Industrial Engineering, University of Brawijaya, Malang 60135 Indonesia

Yeni Sumantri Department of Industrial Engineering, University of Brawijaya, Malang 60135 Indonesia

Rahmi Yuniarti Department of Industrial Engineering, University of Brawijaya, Malang 60135 Indonesia

ABSTRACT Small and Medium Enterprises (SMEs) has a major role in the economy of the country, both in contribution to the Gross Domestic Product and the amount of energy absorption. Agribusiness, forestry, and fishery are the largest industry with SME composition compared with other industrial scale. Thus, SMEs have a very big role towards economic sustainability, especially related to the food industry in the four species, and the balance of nature as a result of the production process. Individual environmental impact by SME not seems significant, but collectively it will have a major impact and will further impact on sustainability performances. This research will be the design of Green Supply Chain Management (GSCM) for SMEs, as a holistic approach to achieve optimality with respect to the balance of environmental benefits. GSCM design will provide an overview of the role of each party in the green activities in the upstream supply chain focuses on farming activities involving farmers as providers of raw materials, dairy manufacturers, dairy cooperative, and government as catalyst and regulator. This study uses KUD BATU (cooperative for dairy farmers in BATU city) as an object of observation and data sources. Design and construction of simulator models GSCM will use Dynamic Systems approach to map existing green practiceon supply chain involving SMEs. The resulting models are expected to be based model to designscenarios to achieveeco-friendly supply chain.

Keywords: GSCM, SMEs, Dairy Industry, System Dynamics.

DOES INTERNET OF THINGS MODERATE THE IMPACT OF GREEN SUPPLY CHAIN INTEGRATION ON GREEN SUPPLY CHAIN AGILITY?

Yudi Fernando Graduate School of Business, Universiti Sains Malaysia, Malaysia, E-mail: [email protected]

Joey-Soo-Yee Phuah Graduate School of Business, Universiti Sains Malaysia, Malaysia, E-mail: [email protected]

ABSTRACT With the rise of Internet and further to the Internet of Things (IoT), a new automotive informationization process has developed. Automotive manufacture IoTs linked from terminals to auto parts manufacturers, chip manufacturers, network hardware, system integration, and software solutions providers. To look at the impact of this process, IoT was tested as a moderator between green supply chain integration and the green supply chain agility. An online survey was administrated to the automotive industry in Malaysia, resulting in 108 completed questionnaires that were analysed using the structural equation modelling with PLS-SEM. Analytical results demonstrated that the green supply chain integration becomes a vital contributor to the green supply chain agility. Findings show that information integration and logistic integration have a positive effect on supply chain agility. The low usage of IoT does not have a moderating effect between green supply chain integration and green supply chain agility. The Malaysian automotive industry still lacks the competitive advantage to penetrate international markets due to its lack of technology, software solutions and system integration among parts and components suppliers. IT infrastructure had been also not yet ready to support the green supply chain integration to enhance green supply chain agility.

Keywords: information integration, logistic, automotive, sustainability, supply chain

DETERMINANTS OF SUSTAINABILITY IN SUPPLY CHAINS

Tariq K. Eltayeb Nour Alhadi Department of Management & Marketing, College of Commerce and Business AdministrationDhofar University, Salalah, Sultanate of Oman, E-mail: [email protected]

ABSTRACT Recent years witnessed increasing concern of the issue of sustainability in business operations due to external pressures and increase sense of responsibility towards natural environment and society. Such concern extended to supply chains and led to the emergence of sustainable supply chain as a new line of enquiry both academicians and practioners. Although many scholars pointed to the importance of the adoption of sustainable practices in supply chains and the factors affecting it, little empirical research was conducted to investigate this important topic especially in developing countries. This study tries to tackle this issue by investigating the extent of adoption of sustainable supply chain practices and the impact of three dimensions (environmental orientation, social orientation, and economic orientation) on the adoption of these practices in Omani context. To achieve its objectives, the study utilized a survey among employees in a large cement company in Oman. Results revealed that environmental orientation and social orientation showed the highest impact on the adoption of sustainable supply chains practices compared with economic orientation. The results obtained from this study have implications for managers, policy makers, and researchers.

Keywords: Determinants, Sustainability, Supply Chains, Cement Industry, Oman.

CONSTRUCTION OF GREEN SUPPLY CHAIN FOR ORGANIC PRODUCTS

Blanka Tundys Department of Logistics, Faculty of Management and Economics of Services, University of Szczecin, ul. Cukrowa 8, 71-004 Szczecin, Poland, E-mail: [email protected]

Andrzej Rzeczycki Department of Logistics, Faculty of Management and Economics of Services, University of Szczecin, ul. Cukrowa 8, 71-004 Szczecin, Poland: E-mail: [email protected]

ABSTRACT The literature indicates that green supply chain is not only dedicated for organic products. Rather, the authors take a focus on the analysis of processes, organizational and law issues and the implementation of innovations that include, among others, the green aspects (manufacturing, production, transportation). Connection of green supply chain with organic products seems to be very important, among other reasons, because the development of the market for these products is dynamic. The interest of these products is growing worldwide. Production of organic products is legally regulated. The final result of this work will be to identify the basis for building a model of green supply chain for organic products (with emphasis on agricultural products), the identification of the factors forming the basis for the construction, relationships between stakeholders and indicate which of the factors determine the greening supply chain and whether they are a necessary or sufficient factors for the role of ecological products of the market.

Keywords: 3 supply chain for organic products, green supply chain, greening of logistics processes.

ESTIMATE THE PATH COEFFICIENT LINKING BETWEEN CO- PRODUCTION ON SUSTAINABLE INNOVATION PERFORMANCE

Yudi Fernando Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, Email: [email protected]

Eugene-Eu-ChunLee Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, Email: [email protected]

Ika Sari Wahyuni-TD Kulliyah of Economics & Management Sciences, International Islamic University Malaysia, Email: [email protected]

Tim Walters Office of International Affairs, Ahmad Dahlan University, Yogyakarta, Indonesia, Email: [email protected]

ABSTRACT The success of new product development (NPD) and market acceptance are the current key challenges for electrical and electronic (E&E) firms. The pressure to create innovative products with lower cost have been pushed E&E manufacturing firms to find innovative ways to sustain themselves globally. Co-production is one alternative business strategy to improve innovative performance. The conceptual model of co-production has been derived from reviewed relevant literature in this, and its effect was empirically tested on sustainable innovative performance based on the E&E manufacturing sector in Malaysia. Even though the overall structural model shows a positive relationship between co-production and sustainable innovation performance, co-production with suppliers and competitors to help create sustainable innovation did not show a strong link. This paper concludes that suppliers and competitors were willing to share resources rather than putting effort into co-producing innovative products with their business partners. E&E manufacturing firms also have been unable to utilize customer feedback as an input for innovation.

Keywords: customers’ involvement, suppliers, value-creation, R&D, new product, innovation

THE IMPACT OF ENVIRONMENT DEGRADATION ON THE SIDOARJO SHRIMP INDUSTRY SUPPLY CHAIN

Achmad Room Fitrianto The Islamic Entrepreneurial and Business Development Centre, The State Islamic University of Sunan Ampel- Surabaya, Indonesia PhD Candidate at School of Social Science and International Studies, Curtin University, Australia, E-mail :[email protected], [email protected]

ABSTRACT The Sidoarjo shrimp industry has experienced three major changes to its supply chain since 1992. The first occurred when a Japanese company called Alter Trade Japan (ATJ) enteredan agreement with a shrimp farmer group known as the Ali Ridho Group to be supplied with shrimp. The second change was when the ATJ facilitated organic certification of Sidoarjo farmers and founded ATINA. At this time, KPTOS, Sidoarjo’s Organic Shrimp Farmer Association, coordinated 104 units of organic shrimp ponds that supplied ATINA. Besides KPTOS, ATINA was also supplied by three warehouses that had 111 shrimp ponds. The last change occurred when ATINA decided to discontinue its certification in May 2008, and establisheda new organic system for traditional ponds. In response most farmers resigned from their partnership with ATINA. The industry has also been forced to manage the environmental impacts of the LAPINDO poison mud disaster, which has increased the risk of pollution through the river system, endangering markets.The aim of this research is to assess shrimp industry stakeholder behavior in response to different initiatives to achieve externally defined sustainable agricultural systems. The paper uses two frameworks in its analyses. The first is risk management theory that highlights the changes in the supply chain. The second is a Sustainability Livelihood Approach thatlocates the risk management in a broader framework focused on understanding shrimp farmer behavior and decision making. Combining these approaches has the benefit of capturing social phenomena’s and investigating future policy action base on the vulnerability factors and maximizing assets in creating livelihood strategies that develop people belonging, togetherness, creativity, participatory and economic opportunity in create better social changes. The involvement of ATINA in Sidoarjo Shrimp Industry is not only about developing markets but also assisting with shrimp product quality. I conclude that ATINA’s actions in promoting organic or eco- shrimp cultivation and bettercultivating technique since early 1990’s have spread beyond farmers ATINA assistance to most shrimp farmers in Sidoarjo.

Keywords: Shrimp Industry, Organic Products, risk management

SIMULATED ANNEALING FOR GREEN VEHICLE ROUTING PROBLEM

Vincent F. Yu Department of Industrial Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan, Email: [email protected]

NurMaykeEkaNormasari Department of Industrial Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan, Email: [email protected]

CandraBachtiyar Department of Industrial Management, National Taiwan University of Science and Technology, Taipei 106, Taiwan, Email: [email protected]

Sukoyo Department of Industrial Engineering and Management, InstitutTeknologi Bandung, Bandung, Indonesia, Email: [email protected]

ABSTRACT In line with the increasing attention toenvironment, greening the transportation sector plays a significant role in minimizing the emission. Therefore, green vehicle routing problem (G- VRP) becomesachallenging topic. G-VRP plays significant role in balancing both cost and environmental concerns. In fact, fuel oil as the main source of energy has side effect to environment. The use of alternative energy is intended to reduce the adverse effects of fossil fuels. In addition, there are many alternative fuel vehicle (AFVs) had been marketed and sold to consumers around the world, although the alternative fuel stations are still limited. As the potential way to solve a number of environmental challenges that relate to emissions caused by transportation, AFV is intended to minimize emission. The objective of G-VRP is minimizing the total distance traveled by AFV. Considering G-VRP is a variant of VRP which is an NP –hard problem and also a hot topic in operationsresearch.To solve this NP- hard problem, this paper proposed a simulated annealing heuristic. Finally, results of numerical experiment show that SA outperforms MCWS (Modified Clarke and Wright Savings heuristic), DBCA (Density-Based Clustering Algorithm), and VNS/TS (Variable Neighborhood Search hybrid with TabuSearch) on computing time and optimal solution.

Keywords: vehicle routing problem, alternative fuel, simulated annealing.

COMMODITY PRODUCTION, CONSUMPTION, AND DISTRIBUTION WITH COORDINATION OF SOFT FACTORS AND HARD FACTORS

Mohammed Forhad Uddin Department of Mathematics, BUET, Dhaka-1000, Bangladesh, E-mail: [email protected]

Kazi Anowar Hussain Department of Basic Science, World University Bangladesh, Dhaka, Bangladesh, E-mail:[email protected]

Manik Mondal Department of Basic Science, World University Bangladesh, Dhaka, Bangladesh, E-mail: [email protected]

Mohammad Khairul Islam Department of Mathematics, Government Ananda Mohan College, Bangladesh, E-mail: [email protected]

ABSTRACT This paper concentrates with a simulated supply chain that consists of manufacturer, whole seller, retailer, and consumer. This model covers the first two steps commodity production, consumption, and distribution of the traditional four-step model. The proposed model estimates the production, consumption, and distribution of several commodities for each firm. In order to reach the optimum production, consumption, and distribution, the coordination of the attributes of the zones and firms are classified into soft factors and hard factors. The hard factors have concrete or actual images, whereas, the soft factors could not be materialized, and they are abstract. Combining the soft factors and hard factors the production and consumption function for each firm have been estimated by regression analysis. The generated commodities have distributed between the production point and the consumption point according to the attractiveness of the production point that generates the commodity flow. In this work, the firms that generate or sell a commodity for the consumers or receivers have considered as the shippers. On the other hand, the consumers are the firms that consume the commodity according to the attractiveness of the shippers. The commodity flow between shippers and consumers along with the role of the key parameters on decision of purchasing a commodity has been determined by the logistic regression. The model with statistically good enough results has been utilized to analyze coordination mechanism on the commodity consumption, generation, and distribution in the Tokyo Metropolitan Area. Keywords: coordination,soft and hard factors, production, consumption, and distribution.

MULTI-OBJECTIVE OPTIMIZATION OF ENERGY CONSUMPTIONIN HOT-ROLLED STEEL SUPPLY CHAIN IN THAILAND

Krit Lerdleuchachai Department of Production Engineering, King Mongkut’s University of Technology Thonburi, Thungkru, Bangkok 10140 Thailand, E-mail: [email protected]

Tuanjai Somboonwiwat Department of Production Engineering, King Mongkut’s University of Technology Thonburi, Thungkru, Bangkok 10140 Thailand, E-mail: [email protected]

Charoenchai Khompatraporn Department of Production Engineering, King Mongkut’s University of Technology Thonburi, Thungkru, Bangkok 10140 Thailand, E-mail: [email protected]

ABSTRACT Steel production is an energy intensive industry and emits CO2 which is a cause of global warming. Many sources of energy may be used in steel production, and incur different costs. This research studies the impacts of energy consumption on the hot-rolled steel production supply chain in Thailand. A mathematical model reflecting the supply chain is developed. The objectives of the model are to reduce the total costs as well as the CO2 emission. The Cost Optimization (CO) model mainly focuses on minimizing the total costs throughout the chain whereas the Emission Optimization (EO) model tries to lower the total emission subject to the same set of constraints. The numerical results show that the CO model yields THB 7.1 billion lower costs than the EO model, but emits about 0.52 billion tons more of CO2e. Looking from another perspective, the cost saving here is sacrificed by higher CO2 emission of approximately THB 13.73 /kgCO2. This cost per unit of CO2 emission may be used as a baseline for a subsidy policy to encourage the use of cleaner sources of energy, or to tax energy sources that are the main CO2 emitters.

Keywords: Hot-rolled steel industry, CO2 emission, energy consumption, multi-objective optimization.

A ROBUST MACHINELAYOUT UNDER DEMAND UNCERTAINTY

KaiHashimoto Dept of Business Design and Management,Creative Science and Engineering, Waseda University,E-mail: [email protected]

Shunichi Ohmori Dept of Business Design and Management, Creative Science and Engineering, Waseda University,E-mail: [email protected]

Kazuho Yoshimoto Dept of Business Design and Management, Creative Science and Engineering, Waseda University,E-mail: [email protected]

ABSTRACT In this paper we consider a problem of considering a robust design of material flow network and machine layout, in which product demands are not specified exactly and it is only known to belong to a given uncertainty set, yet the efficiency of facility planning should be reasonable for possible values of the data from the uncertainty set. We derive an integer- programming based formulation for designing a robust facility planning under demand uncertainty, and describe an efficient algorithm to solve it. We proposed three-stage optimization models involving machine purchasing, capacity assignment and machine layout, each of which utilizes simulated annealing. The objective function is composed of the material handling cost, machine purchasing cost, and overcapacity penalty, where the material handling cost is evaluated on a monte-carlo simulation basis to incorporate the demand uncertainty. We present a small case study example motivated by our interaction with an electronic parts manufacturing company.

Keywords: Facility Logistics, Material Handling, Simulation.

AN INTEGRATED PRODUCTION-INVENTORY MODEL FOR FOOD PRODUCTS BASED ON SHELF-LIFE PRICING

Gusti Fauza School of Engineering, University of South Australia, Dept. of Food Science and Technology, Sebelas Maret University, Surakarta, Indonesia E-mail: [email protected]

Yousef Amer School of Engineering, University of South Australia,

Sang-Heon Lee School of Engineering, University of South Australia,

Hari Prasetyo Pusat Studi Logistik dan Optimisasi Industri, Teknik Industri, Universitas Muhammadiyah Surakarta, Indonesia

ABSTRACT Existing studies on integrated production-inventory models for perishable items demonstrate that an inventory for such products will diminish due to demand and deterioration. They mostly assume that the quantity of stored item starts to deplete immediately. It does happen for certain perishable items such as gasoline, alcohol or radioactive materials. Over the self- life of numerous food products, such as vegetables, meat and bread, however, the quantity remains constant but the quality or value does deteriorate as the self-life approaches the expiration date. Unfortunately, less research is found addressing this circumstance particularly when a multi-echelon supply chain system is considered. For this reason, this research proposes a mathematical model of an integrated production-inventory system incorporating value degradation which is better suited to food products. This system comprises a manufacturer and a retailer. A shelf-life based pricing represents the value degradation at the retailer since the customers typically examine the quality of the purchased items based on its best-before-date (BBD). The objective function of the resultant model is to maximise the joint profit per unit time which is achieved by optimising the length of production cycle (T) and the ordering number of finished goods (n) over the production cycle. The conducted numerical test demonstrates that the established model could yield a significant potential saving compared to the existing models.

Keywords: perishable items, inventory model, value degradation, shelf-life based pricing.

IMPROVING PERFORMANCE OF SUPPLY CHAIN IN PORT BY SIX SIGMA METHODOLOGY APPROACH

Asep Ridwan Transportsysteme und-Logistik, Universität Duisburg-Essen Keetmanstrasse 3-9, 45478 Duisburg, Germany, E-mail: [email protected]

Bernd Noche Transportsysteme und-Logistik, Universität Duisburg-Essen Keetmanstrasse 3-9, 45478 Duisburg, Germany, E-mail: bernd.noche@uni- due.de

ABSTRACT The performance of the supply chain in port becomes one of the competitiveness elements. This study implemented the Six Sigma Methodology in port practically, especially in the supply chain flow of cargo handling. Sigma value and capability process were still low in cargo handling in XYZ Port. The main purpose of our research is to improve performance of the supply chain with Six Sigma Methodology. Six Sigma Methodology is a quality improvement method dramatically. Case study has been taken in XYZ Port- Indonesia with the three biggest of cargo handling, as follows: fertilizer, slab steels, and iron ore. Data were collected by observation and interview with Department of Logistics Service at XYZ Port. The result of Sigma Value in cargo handling is 1.60 on average and Process Capability Indices is 0.04 on average. Sigma value and process capability indices in cargo handling are low. As general, the root causes of these problems are: cargo is not a stable; quantities of filling to the trucks are different; loader & excavator is late; queuing of trucks at the scale; and bagging workers are late and not enough. Designs of improvement from Failure Mode Effect Analysis (FMEA) are: it selected the ship with the good condition with the same perception between the surveyor and designing the special storages and their supporting equipments; designing of the automatic load censors; adding units of operational cooperation with outsourcing; designing the gate access system in the scale and simulating a model to get the optimal number of trucks; and adding manpower for the bagging process and giving an incentive. Six Sigma methodology can be designed to improve supply chain performance in port.

Keywords: Six Sigma, Supply Chain, Performance, Port.

THE IMPACT OF POWER DISTANCE AND INDIVIDUALISM ON TOTAL QUALITY MANAGEMENT: AN EMPIRICAL RESEARCH ON INDONESIAN MANUFACTURING FIRMS

Didik Wahjudi Mechanical Engineering Department, Petra Christian University, Surabaya, Indonesia, e-mail: [email protected]

Moses L. Singgih Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Patdono Suwignjo Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail:[email protected]

Imam Baihaqi Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail:[email protected]

ABSTRACT Power distance is reported to be the most important culture dimension for effective implementation of total quality management (TQM), while low individualism stimulates the company to focus on its long-term customers. Indonesia is characterized by very high power distance and very low individualism. However, Indonesia has a very unique cultural setting because it has many subcultures. This study investigates the impact of power distance and individualism on TQM implementation among Indonesia manufacturing firms. As many foreign companies move their operations to Indonesia, they need to know how to cope with this situation. Data from 152 managers and directors representing 152 organizations are analyzed using structural equation modelling (SEM). The results show that individualism affects TQM implementation positively, while power distance has no correlation with TQM implementation. The contribution of this study is providing direction for improvement to Indonesian manufacturing firms that want to implement TQM. The implication of this finding is that top management need to set up an atmosphere that can improve level of individualism of their employees through people empowerment.

Keywords: organisational culture, total quality management, structural equation modelling.

COORDINATION MECHANISM OF CONTAINER FLOW FOR IMPORT PROCESS: A CONCEPTUAL MODEL

Femi Yulianti Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

Senator Nur Bahagia Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia

Andi Cakravastia, Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

Rajesri Govindaraju Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia, E mail: [email protected]

ABSTRACT Port logistics problem has become more complex than before. One of the problems that has always been faced by ports in developing countries like Indonesia is the high dwelling time. One of the causes is lack of coordination. Issues related to coordination rises where dependencies among actors are no longer inevitable. Especially in Tanjung Priok Port, the issue becomes worst because there are no synchronous planning among actors, services are performed only when requisition occurs, and no actor/ system is monitoring and controlling the whole process. Moreover the condition becomes more complex when the issues occurred in dynamic environment. In order to design a coordination mechanism among these actors, this paper intends to develop a conceptual model of coordination. The contribution of this research is highlighted by the mechanism of coordination i.e. relation/ structure of coordination among actors. This mechanism is not just derived from economic theory like other references but also from others theory especially resources dependency (power concept) and IT impact theory. The framework used in this research consists of three parts i.e. input, a design, and an output. The first input is obtained by capturing the existing pattern of coordination. The second input is the theory of Inter Organizational Systems (IOS) in coordination i.e. the structure and the mechanism of coordination. The third input is the identification of daily decisions in port. All three inputs mentioned combined with predefined criteria are used to design the conceptual model of coordination for the flow of import goods. The output of this research is a model of coordination to manage the flow of import goods coming out from seaport to hinterland. AHP is used in choosing the model from all alternative models that had been developed.

Keywords: coordination, dwelling time, IOS.

ALLEVIATING TRAFFIC CONGESTION AROUND OUR CITIES; HOW CAN SUPPLY CHAINS ADDRESS THE ISSUE?

John L. Hopkins Department of Information Systems and Logistics, Swinburne University of Technology, Hawthorn VIC 3122, Australia, E-mail: [email protected]

Judy McKay Department of Information Systems and Logistics, Swinburne University of Technology, Hawthorn VIC 3122, Australia, E-mail: [email protected]

ABSTRACT Traffic congestion is causing increasing concern in many cities around the world. The use of motor vehicles is rapidly growing, often leading to an increase in demand for urban road use without there being sufficient capacity to accommodate it, causing lengthy delays and contributing to a number of serious local, regional and atmospheric issues. Concern is shared by both society and supply chains, who whilst contributing towards the issue also suffer because of its existence, and a number of differing solutions are emerging. This research examines the current body of literature to highlight a number of strategic measures that supply chains might utilise in order to tackle the issue of traffic congestion. The extensive multidisciplinary source material included in this review ranges from academic articles in the fields of production management, transport, industrial marketing, and employment and society, to government policy documents on town planning, climate change and workforce management, and is drawn together to contribute a unique high-level view and insight into the issue. Possible measures, such as changes in attitude towards JIT, coopetition, increasing home deliveries and challenging traditional working practices are all discussed.

Keywords:traffic congestion, dark stores, competition, smart work centres (SWC),activity- based working (ABW), JIT, last mile.

THE GLOBAL LOGISTICS NETWORK DESIGN PROBLEM WITH RULES OF ORIGIN

Yohei Shinkawa Dept of Business Design and Management, Creative Science and Engineering, Waseda University, E-mail: [email protected]

Shunichi Ohmori Dept of Business Design and Management, Creative Science and Engineering, Waseda University, E-mail: [email protected]

Kazuho Yoshimoto Dept of Business Design and Management, Creative Science and Engineering, Waseda University, E-mail: [email protected]

ABSTRACT The purpose of this paper is to provide a decision support aid for the global logistics network design of an assembly system with Rules of Origin. With a progress in globalization, considering Rules of Origin, determined in Free Trade Agreement (FTA) and regional cooperation association (ASEAN, NAFTA, TPP etc), is necessary for companies. Rules of Origin are rules to decide the place of origin of a product which determines whether to impose customs duties. If the rate of origin qualifications exceeds a specified value in one’s country (FTA) or region (regional cooperation association), the productis exempted from customs duties. Therefore, developing global supply chain considering origins of each part in bills of materials is essential for companies. In this paper, we develop the global logistics network design model prescribing locations of facilities, and allocating amounts for production, assembly, and distribution. This paper presents an integer programming model that represents the complexities associated with international and inter- enterprise issues. The objective is to minimize total costs which are costs of production, assembly, transportation, and inventory, customs duties and fixed costs of opening factories. In addition to customs duties, this paper takes account of Rules of Origin which is not considered in previous studies. Simulated Annealing is used to search for the optimal solution. Several computational experiments with industrial examples are presented to validate the model. This paper also analyzes how the changes of international relationships and currency exchange rates will have impacts on logistics network design and evaluation function.

Keywords: Global logistics network design, Global supply chain, Rules of origin, Free Trade Agreement, Simulated Annealing THE GROWTH OF THIRD PARTY LOGISTICSINDUSTRY: LITERATURE STUDY ANDRESEARCH AGENDA

ErnaMulyati Politeknik Pos Indonesia Bandung Doctoral Student at Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Budi Santoso Wirjodirdjo Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Imam Baihaqi Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Logisticsplays an important roleinthe supply chain process. An effective logistics management is required to become an efficient supply chain. Increasing trend in global manufacturing and global sourcing has made an efficient logistics become imperative especially in increasing the relation among entities. However, companies are forced to decrease cost continuously by focusing on their core activities. As a result, the trend of using third parties in performing logistics activities is increasing. The later causes significant growth in the third party logistics industry. The focus of this paper is on review of relevant literature in the growth of logistics industry and identifiesgrowth contributed factors. Several research opportunities from the literature will also be discussed.

Keywords:LiteratureReview, Logistics, Logistics Industry, Third Party,Supply Chain.

ASSESSING LOGISTIC STRATEGY FOR SERVICE QUALITY AT SELECTED AGGLOMERATED RETAIL SHOPPING CENTRES IN THANE CITY AND SUBURBAN MUMBAI IN INDIA

Parvathi Venkatesh Mulund College of Commerce, Mulund 400080 Mumbai, India, E-mail: [email protected]

ABSTRACT The present study is a survey approach to measure service quality with reference to current thinking of consumers and their future requirements. It is an analysis of evaluating the gap between customer perceptions and expectations of service quality in selected agglomerated retail shopping centres in Thane and eastern suburbs of Mumbai in India. Data were collected from 600 customers of large retail shopping stores using structured questionnaire. Basic framework of SERVQUAL model has been adapted and seven customer quality dimensions were introduced to suit the purpose.The scores have been further analysed by using descriptive statistics and inferential statistical Test. The study showed distinctive results for the relationship between service quality dimensions and service quality. The result shows that at group level, all logistic dimensions of service quality such as Access, Architecture, Assortment and Alignment positively influences the service quality as the customer perceived service are high to their expectations. The result also indicates that gap in specific attributes in the subgroups like safety and security arrangements are statistically significant.This paper serves a model mapping for retail managers and provides valuable information which may help them to better understand the customers’ preferences and the business.

Keywords: Agglomerated retail stores, service quality dimensions, SERVQUAL model, gap analysis, perception and expectation.

WORKFORCE AGEING IN THE AUSTRALIAN TRANSPORT AND LOGISTICS INDUSTRY: REALITY OR MYTH?

Prem Chhetri School of Business IT and Logistics, RMIT University, Melbourne 3000 Austalia, E-mail: [email protected]

Victor Gekara School of Business IT and Logistics, RMIT University, Melbourne 3000 Austalia, E-mail: [email protected]

Darryn Snell School of Management, RMIT University, Melbourne 3000 Austalia, E-mail: [email protected]

ABSTRACT Workforceageing is a major challenge for the twenty-first century. The potential impacts of workforce ageing for organisations include the workforce replenishment and supply of labour, costs associated with continuous improvement through training and skilling, monitoring of productivity levels and loss of tacit knowledge. This paper examines the nature and scale of ageing at work in the transport and logistics (T&L) industry. The term ‘ageing’ is contextualised to represent the transitioning of workforce towards a retirement. Using the Census data, ‘ageing at work index’ is calculated to compare the ageing of workforce across the key T&L occupations in comparison to the national workforce. 46.3 per cent of the T&L workforce was aged 45 and above in 2011, which has increased to 50 per cent in 2011. Age pyramids show minor structural differences in workforce ageing between T&L and the national workforce. Ageing at work index however shows significantly higher levels of ageing in Road Passenger Transport, Urban Bus Transport, Interurban and Rural Bus Transport and Taxi and Other Road Transport. The paper concludes by identifying key concerns associated with ageing workforce.

Keywords: Ageing workforce, Transport and Logistics industry, training and skills.

AGRIBUSINESS PERFORMANCE MEASUREMENT SYSTEM : SUPPLY CHAIN AND ENABLING ENVIRONEMENT PERFORMANCE

Alexis Nsamzinshuti Qalinca Labs, Brussels School of Engineering, Université Libre de Bruxelles, Av. Franklin Roosevelt 50 - CP 165/04, 1050 Brussels, Belgium E-mail: [email protected]

Alassane Ballé Ndiaye Qalinca Labs, Brussels School of Engineering, Université Libre de Bruxelles, Av. Franklin Roosevelt 50 - CP 165/04, 1050 Brussels, Belgium E-mail: [email protected]

ABSTRACT The FAO estimates losses in agricultural production of between 30 and 50 percent for developing countries. Logistics related activities (post-harvesting, transportation systems, processing stages, etc.) are the main source of these losses. Yet to meet the demands of the growing world population, which is expected to reach nine billion people by 2050, international institutions (FAO, World Bank, etc.) estimate that global agricultural production must be increased by 60 percent. Developing regions such as Sub-Saharan Africa still possess 60 percent of the world's uncultivated land. Although supply chain improvements in these regions can contribute to the necessary increase in agricultural production, current supply chain performance levels and operating environments in these developing countries must be known to permit stakeholders to make effective improvements. This information will enable them to identify bottlenecks and decide where they should focus their energies. To gain these insights, a performance measurement system is needed. In developing countries, particularly in Sub-Saharan Africa, a lack of information and a low level of maturity constitute some of the main limitations to measuring supply chain performance. To fill these gaps and to establish an effective action plan, stakeholders require tools that allow them to measure the performance of their supply chain. This paper aims to provide an agribusiness performance measurement system. The proposed system concerns supply chains for which some stakeholders are located in developing regions. In addition, the problem of insufficient data for these regions is addressed by identifying available data sources that would permit an evaluation of the level of performance despite this lack of information. Indicators used in the performance measurement system are mainly derived from literature and fields research.

Keywords: agribusiness, developing countries, performance measurement, Sub-Saharan Africa.

PRODUCTION SYSTEM IN FOOD INDUSTRY:A LITERATURE STUDY

Endang Retno Wedowati Wijaya Kusuma Surabaya University Doctoral Student at Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail:[email protected]

Moses Laksono Singgih Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

I Ketut Gunarta Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Food industry plays an important role in order to satisfy community needs with respect to availability, distribution and quality of food. To meet the needs of different consumers, manufacturers need to adapt products and services to fit their needs. Food processing industry has the typical characteristics, due to the nature of the food products that are relatively perishable, bulky and seasonal; therefore these characteristics have to be handled properly. This paper aims to review the previous studies on the food industry, production system in food industry, as well as the possibility of mass customization application in food industry. Production patterns of food processing industry are marked with different products structure, in which a small number of raw materials can be used to produce a variety of end products according to customer's request. System of food processing industry generally involves a two-stage process i.e.: processing and mixing. The processing stage often involves processing of intermediate product. While on mixing stage, intermediate products are blended into a formulated final product. Literature study shows that the study on the production system in food industry discussed the scope of production planning and scheduling, make to stock-make to order strategy, the concept of decoupling point, the concept of postponement, as well as related issue of the mass customization (MC) application in the food industry. So far, there are not many studies of mass customization on food industry. Therefore it is necessary to study the possibility of mass customization application on food industry, the advantages, as well as the strategies that can be performed related to the characteristics of typical food industry. Furthermore, to develop appropriate production systems and production planning to handle an increase in variation of products.

Key words: food industry, production system, mass customization, perishable product.

DESIGNING AN INTEGRATED FOODSUPPLY CHAIN WITH CROSS-DOCKING: A SOCIAL NETWORK APPROACH

Prashant Barsing Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

Yash Daultani Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

Omkarprasad S Vaidya Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

Sushil Kumar Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

ABSTRACT Today’s business firms are facing a lot of uncertainty, unpredictability, and complexity. These challenges get multifold in the case of food industry, due to the short product shelf life and high product variety. As a result, food industry has adopted various quick response systems to achieve effective and efficient supply chain management. However, a quick response system alone cannot guarantees the solution of all problems. Thus, to increase the agility in the system, cross-docking is generally used to speed up the turnaround time of the food products. In this paper, we consider multiple suppliers and customers, with a single cross-docking center (CDC) between them. With such a problem setting, the issues concerning the coordinated routing between the inbound and outbound routes are much more complex than any traditional vehicle routing problem (VRP). In our case, the core issue is to locate CDCs which can be well connected to other actors in the supply chain. Based on the relationship between the suppliers and customers, we use social network analysis (SNA) to improve the overall traveling time, distance covered, and waiting time at the CDC. Further, we perform simulation studies to identify a central site for the products to be sorted and combined, while aiming the reduction of the delivery costs to multiple destinations. Our results show that the considered food supply chain system with cross- docking, can be effectively streamlined using SNA.

Keywords: Cross-docking center (CDC), Food supply chain, Social network analysis (SNA), Vehicle routing problem (VRP).

DEVELOPMENT AND IMPLEMENTATION OF A FRUITS ELECTRONICS TRACEABILITYSYSTEM IN FRESH FRUITS SUPPLY CHAIN

IwanVanany Department of Industrial Engineering, InstitutTeknologiSepuluhNopember, Surabaya 60111 Indonesia, E-mail: [email protected]

Ronny Mardiyanto Department of Electrical Engineering, InstitutTeknologiSepuluhNopember, Surabaya 60111 Indonesia, E-mail: [email protected]

Royyana Muslim Ijtihadie Department of Informatics, SepuluhNopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

KuntoroBogaAndri Assessment Institute for Agricultural Technology, Malang, Indonesia Surabaya 65101 Indonesia, E-mail: [email protected]

ABSTRACT For fresh fruits supply chain in Indonesia, there are still some problems that remain to be solved such as spend more time for records-keeping, less information sharing among players,inaccurate transport, and incomplete documents for food safety (free pesticides documents etc.). It represents the important requirements for developing and implementing an effective traceability system. This paper presents development and implementation a fruits electronics traceability system (FETS) as better way for fresh fruits supply chain players to solve existing problems. The architecture and design of a FETS was provided using Unified Modeling Language (UML). Based on these models, the software was developed by open source cross-platform development. The experts, holding plantation, and farmers as supply chain players in case study had been evaluated a FETS model and software. The evaluation results indicate that a FETS can solve the existing problems and support the food safety documents compliance.

Keywords: Electronics traceability system, fresh fruits supply chain and development and implementation.

ACTORS INTERACTION ON PRICE TRANSMISSION IN RICE SUPPLY CHAIN

Maria Widyarini Business Administration Department, Faculty of Political and Social Sciences, Parahyangan Catholic University, Bandung 40142 Indonesia, E-mail: [email protected]

Togar M. Simatupang School of Business and Management, Bandung Institute of Technology, Bandung Indonesia, E-mail: [email protected]

ABSTRACT Most of the asymmetries in the price transmission of agricultural products partially address the presence or absence of the bargaining power and market competition among actors. The previous studies about agricultural market competition and bargaining power of actors are partially addressed. However, the role of actors’ behavior and the process of social interaction that is constructed and reproduced are regarded as important parts of the price transmission process. This study investigates the underlying reasons for price trasmission assymetries in the rice value chain observed in West Java Province. The Contex- Mechanism-Output (CMO) approach is used to investigate and understand the actors’ interaction on price transmission along the rice value chain. The CMO was built from the extensive observation and interviews which showed the actors’ interactions related to transaction flow, inventory flow and price information flow. This study found that actors’ social interactions on price transmission occurred as the presence of traders (wholesaler and retailer) market power and also influenced by the existence of a number of operators in various types of networks and bargaining power during actors’ interactions process. The rice price transmission assymetries seem to be related to market power that governs the transactions process. The presence of operational restrictions of actors interaction and price distortion to limit competition among actors were caused by the asymmetries price transmission process.

Keywords: actors interaction, price transmission, rice value chain.

A SYNCHRONIZATION ALGORITHM OF SEEDING AND PLANTING SCHEDULING WITH SALES PLANNING FOR CONTRACT FARMING OF FRESH VEGETABLE SUPPLY CHAIN

Ahmad Rusdiansyah Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

Dewie Saktia Ardiantono Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT This study develops a synchronization algorithm of seeding and planting scheduling with sales planning of organic vegetables supply chain. We made an algorithm for two echelons of the agricultural supply chain, which are Urban Farming Center (UFC) and farmers. UFC is an organization which develops cooperation with farmers in contract farming. UFC has responsibilities to receive the demand from the customer, and then creates a seeding and planting scheduling for the farmers based on the sales planning. After a particular period based on the maturation time of the vegetables, farmers bring the crops to the UFC and exchange the crops with seedlings that will be planted in the next period. Due to the limited land, planting process assigned to the green house and some farmers used the concept of mixed cropping to maximize land productivity and optimize gain sharing from the profit earned. We attempt to obtain the optimal synchronized seeding and planting scheduling. We conducted some numerical experiments to show the behavior of our proposed model. We used two main changes scenarios, the changes of land availability toward mixed cropping combination and the changes of production target toward the profit earned.

Keywords: Contract Farming, Fresh Vegetable Supply Chain, Mixed Cropping, Scheduling

CAN AN UNDERACHIEVER BECOMECOMPETITIVE? THE CASEOF THE ROMANIAN FOOD INDUSTRY

Marian LiviuMocan Department of Management, Politehnica University from Timisoara, Timisoara 300191 Romania, E-mail: [email protected]

Attila Turi Department of Management, Politehnica University from Timisoara, Timisoara 300191 Romania, E-mail: [email protected]

Gilles Goncalves Department of Informatics and Automation, Univ Lille Nord de France, Lille 59000France, E-mail: [email protected]

Sorin-IoanMaistor Department of Management, Politehnica University from Timisoara, Timisoara 300191 Romania, E-mail: [email protected]

ABSTRACT The paper outlines current challenges in Romanian food industry, its potential to overcome them and be competitive on both the national and international market using a key performance indicator (KPI) methodology. Although it has the capacity to assure internal consumption and competition on the market is high the Romanian food sector is struggling to meet internal demand, imports heavily exceed exports while food consumption is decreasing. The retail sector is an important part of the supply chain, but the harsh competition among the different stores has made them pass the risks only towards the upstream links which is straining food processors and producers and threatening the sustainable development of the food supply chain. High taxation, unfair competition and delayed payments towards food processors add extra pressure on the weaker links of the chain. Moreover authorities are inefficient in assuring duly market conditions whereas scandals further degrade industry image and cause important losses. The lack of synergic efforts within the industry and the scarce collaboration efforts between business partners affect individual company performance and thus global industry competitiveness. The research provides solutions that address its structural issues and develops performance indicators to improve the efficiency of companies in order to assure their sustainable development within the supply chain and become more competitive on the global food market.

Keywords: food industry, competitiveness, collaboration, supply chain, performance indicators.

SOFT AGENT BASED MODELING FOR AGRI-FOOD SUPPLY CHAIN COORDINATION

Yuanita Handayati School of Business and Management, Institut Teknologi Bandung, Bandung 40132 Indonesia, E-mail: [email protected]

Togar M. Simatupang School of Business and Management, Institut Teknologi Bandung, Bandung 40132 Indonesia, E-mail: [email protected]

Tomy Perdana Faculty of Agriculture, Universitas Padjajaran Bandung 40132 Indonesia, E-mail: [email protected]

ABSTRACT Research on agricultural supply chain coordination has a special attention today, because of the shifting of consumer behavior related to food availability and safety. In this study, the concept of value co-creation in agricultural supply chain coordination especially in fruits and vegetables is proposed. The value co-creation concept is adopted in order to improve the overall performance of supply chain. The study also proposes a framework of soft agent based modeling that can be used as an alternative methodology to tackle problem in complex situation. The existing agent based modeling focuses on the interaction between agents and analyzes the behavior of agents to construct emergent properties, but lack of explanation how the issue of real world situation is derived and how to check that the model will be feasible implemented in the real world situation. This study proposes a problem conceptualization of soft agent based coordination model for value co-creation which can be implemented in agricultural supply chain. The three stages of soft agent based modeling is implemented in a case study of horticulture in West Java, Indonesia to determine the root problem definition to make sure that the agent based modeling already have a comprehensive real-world grounding before entering the simulation stages. The implementation of the model defines that the root problem of the case study is how the interaction and exchange for co-creation of value is happened between actors in order to improve the supply chain performance.

Keywords: agriculture supply chain coordination, value co-creation, agent basedmodelling.

ANALYSING RISKS IN MILK SUPPLY CHAIN: A PRELIMINARY FINDING

Andre R Daud Faculty of Animal Husbandry, Padjadjaran University Jatinangor-Sumedang 45363, Indonesia, E-mail: [email protected]

Utomo S Putro School of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia

Mursyid H Basri School of Business and Management, Bandung Institute of Technology, Bandung 40132, Indonesia

ABSTRACT Agricultural production is actually a risky business. Risk always exists in every stage of production carried out by each of the actors along the production chain. It implies that the success of improving the performance of agricultural business will mostly rely on actors’ ability to manage risk. This paper reports findings from an exploratory study of supply chain risk in Indonesia milk supply chain. The focus is to identify the sources of risk which may appear in the milk supply chain, and also the implication of such risk on production behavior along the chain. Informal interviews and forum-group discussions have been conducted during early 2014 with farmers, farmer-cooperative and dairy manufacturer in a milk- producing region in West Java. This has revealed some early findings concerning the sources of risk in milk supply chain, and the likely consequences for upstream and downstream actors. Finally, it preliminary concludes that a broader scope of supply chain risk management is considered necessary in milk supply chain.

Keywords: supply chain, risk, identification, milk.

LOCAL FOOD PRODUCTION, CUSTOMER PREFERENCES AND LOGISTICAL CONSEQUENCES

Per Engelseth Molde University College, Faculty of Logistics, 6410 Molde, Norway, E-mail: [email protected]

Blen Delelegne Department of Technology, Narvik University College, 8505 Narvik.

ABSTRACT To attain sustainable logistics in food production, shortening transport from food production source to the place of consumption, is emerging as an major topic in food supply. First literature on local food distribution is reviewed. Based on this review a single case study of local food supply in the Norwegian town of Narvik is described. The case concerns accordingly a municipality. Inquiry involves in-depth interviews with producers, retailers and a consumer survey. Findings provide understanding of how to define “local foods” as well as the importance of this form of food distribution. The study underpins the growing importance of this form of food distribution. It also reveals how local foods involve using complex marketing channels even though distance is small. This meaning that a wide range of logistics solutions are feasible. Other than the "short transport" feature, there is accordingly no clear-cut form of logistics for the distribution of local foods.

Keywords: Local food distribution, logistics, market driven supply

RETAILERS CLUSTERING TO MINIMISE PROFIT GAP AMONG DISTRIBUTOR CENTRES USING GENETIC ALGORITHM

Muhammad Ridwan Andi Purnomo Department of Industrial Engineering, Faculty of Industrial Technology, Universitas Islam Indonesia, Yogyakarta, Indonesia, E-mail: [email protected]

ABSTRACT In this paper, a dedicated supply chain (SC) system is investigated. The SC system is for franchise company with 4 distributor centres (DCs) and 20 retailers. In such system, the main company would fully control distribution of product. The DCs are already located and established, hence, in order to manage the product distribution, the main company would direct the DCs to supply several retailers. In that situation, stability of the SC is very critical. However, the most potential problem that could arise is jealousy among DCs, and the main company must be able to anticipate it. All DCs must be maintained profitable and get uniform profit. Therefore, parameter used to manage the SC is profit balance among DCs, instead of cost minimisation that usually used for SC system analysis. This paper presents a mathematical model to reduce profit gap among DCs through retailers clustering. Objective function of the proposed mathematical model is minimising standard deviation of profit among DCs. To solve the model, because there are a lot of variables, then a well known searching algorithm, called Genetic Algorithm (GA) is used. Detail process how the GA is developed is also presented in this paper. Based on a real world case study, it could be concluded that the proposed mathematical model could work as the basis of the optimisation. The proposed GA could provide a feasible solution for that case and able to reduce the standard deviation of profit among DCs to level 1.59% compared to the average profit among DCs.

Keywords: clustering, retailers clustering, supply chain, modelling, optimisation, genetic algorithm.

ROUTING ORDER PICKING IN A WAREHOUSE USING HETEROGENEOUS PICKING TOOLS AND SPLIT PICKING

Muhammad Nashir Ardiansyah Department of Industrial Engineering, Telkom University, Bandung 40625 Indonesia, E-mail: [email protected]

ABSTRACT Order picking is one of the main activities in the warehouse. This activity takes up about 55% of the overall warehouse activities. Order picking is done by the picker using tools (lift truck or hand jack) or manually using hand to take the goods according to the order picking list. The constraint related to tool capacity and the number of tools will make the order picking activity takes a long time. The order picking fulfillment activity must wait because insufficient tools capacity and quantity to finish the activity simultaneously, where the order picking activity has a time limit. Moreover, there is possibility for the quantity to be picked that are bigger than the capacity of each tools. The picker must visit the picking point more than one time. This paper discusses the problem of order-picking warehouse with an emphasis on finding a route with regard to tools number (quantity) and tool capacity. The Insertion heuristic method is used to find an initial solution route using different types of transportation equipment. Genetic algorithms are used later on to improve the order picking route in order to get a better solution. The objective function is to minimize the time of the total order picking in a rectangular warehouse.

Keywords: Order picking, routing, warehouse, vehicle routing problem, genetic algorithm.

OILFIELD CREW SCHEDULING USING MATHEMATICAL MODELLING

Mukund Murari Singh General Field Engineer, Well Production Services Schlumberger Asia Services Ltd. [email protected]

Vaibhav Gupta Senior Undergraduate, Bachelor of Technology Indian Institute of Technology, Kanpur – India [email protected]

ABSTRACT As jobs in the oil industry have unforeseen demands such as drastic increase and decrease in business activities and high accountability decision making, managers have to devise efficient and effective methodologies for crew planning and scheduling. This paper describes a mathematical model for crew scheduling in the oil industry. Crew scheduling in the oil industry involves constructing work schedules spanning over a horizon so as to meet (i) upcoming project requirement(s), (ii) client-specific requirement(s), and (iii) to ensure employee satisfaction. In this paper oilfield clients and vacation preferences of employees develop a multi-objective approach, which heeds to crew requirements for a specified futuristic period, competencies of an employee, and experience-based requirements. It then generates the most optimum schedule subject to constraints and objectives of the management. There is further discussion on the solutions obtained and their interpretation. This interpretation acts as an indicator towards crew training and recruitment. The model is further extended to multiple competency scenarios, in which more than one proficiency of an employee can be handled. The implementation of this approach is illustrated with an example, numerical results and feasible algorithms.

Keywords: Oilfield Crew Scheduling, Crew Rostering, Operations Management, 0-1 Integer Programming.

CHALLENGES OF THE ZIMBABWEAN NATPHARM BASED, PUBLIC-SECTOR HUMANITARIAN LOGISTICS AND SUPPLY CHAIN OF HIV AND AIDS COMMODITIES

Tatenda T. Chingono University of Johannesburg, Department of Quality and Operations Management, APB, Johannesburg, South Africa. E-mail: [email protected]

Charles Mbohwa University of Johannesburg Department of Quality and Operations Management, APB, Johannesburg, South Africa. E-mail: [email protected]

ABSTRACT The national antiretroviral therapy program is in a very rapidly expanding, roll out phase with the number of people living with HIV/AIDS receiving antiretroviral therapy increasing exponentially (UNIDO, 2011), but also according to the UNIDO (2011) report the program has recently been experiencing short supply of antiretroviral and AIDS/HIV commodities. The supply chain management system is also not well defined (UNIDO, 2011) interruption of supply of antiretroviral is a major challenge to the national program. Supply interruption will increase the risk of treatment failure and development of ARV resistance, hence there is a need to strengthen the current supply chain and logistics so as to reduce the risk of stock outs and to also strengthen the capacity of the government of Zimbabwe to absorb the high volumes of HIV/ AIDS commodities from the global fund and other donors according to the UNIDO (2011) global project report. The main objective of this study was to identify challenges of the current (public sector) logistics for procurement, storage and distributions based at Natpharm Zimbabwe. The study mainly used secondary data from the literature review, this method was complimented by semi-structured interviews with management and personnel in the organisation studied. Solutions and recommendations were then identified in order to attend to the identified deficiencies, problems and challenges.

Keywords:

A MODEL FOR EQUITY IN HUMANITARIAN RELIEF SUPPLYCHAIN

Yasutaka Kainuma Faculty of System Design, Tokyo Metropolitan University, 6-6, Asahigaoka, Hino, Tokyo 191-0065 Japan, E-mail:[email protected]

KamrulAhsan College of Business, Victoria University, City Flinders Campus, Melbourne, Australia, Phone: 03 9919 1174, E-mail: [email protected]

ABSTRACT The Great East Japan Earthquake (GEJE) attacked the North-Eastern Parts of Japan on March 11 in 2011 and the scale of the earthquake was the largest in recorded history in Japan. Supplies came in the form of donation from many countries/regions and organizations. Overall, managing the relief operations for such a large earthquake is very complex in terms of the unknowns of time, place and severity. Other complexities of DRO are coming in terms of finding possible supplies, timely response; human and material resources for relief operations; necessary equipment and information technology, and human interfaces in the distribution of aids. There are some researches about SCM for DROs so far, but there are very few papers found in literature which investigate the situation and lack of information about the demand of relief supplies at the time of occurrence of disaster. To fill the gap, we examined newspaper contents and analyzed how DRO of the GEJE are performed in terms of the principles which were required for the design of SCM for DRO. We propose two additional principles of SCM such as agility and proximity, and analyzed static and dynamic situations separately. The required information of disaster wasn’t transmitted to the public was one of the reasons why actual relief operations didn’t function. The newspaper reports would play an important role to promote functions of DRO sufficiently in addition to a conventional role as media to transmit real circumstances of the afflicted areas. Our study will contribute the humanitarian logistics literature as well as practitioners to develop disaster relief operations strategies and process. The modelling method of integrated supply chain network for Japanese disaster relief operations in order to organize such as FEMA can manage the activity for provision of relief items centrally. The mathematical model is proposed and investigated.

Keywords: humanitarian supply chain management, disaster relief operations (dros), the great east japan earthquake, quantification method 3.

A MACRO AND MICRO-LEVEL EVALUATION OF STAKEHOLDERS’ COLLABORATION STRATEGIES FOR SUSTAINABLE CITY LOGISTICS OPERATIONS

Taiwo O. Adetiloye Department of Information and Systems Engineering, Concordia University, Montreal, Quebec H3G 2W1, Canada, Email:[email protected]

Gul Pervez Department of Information and Systems Engineering, Concordia University, Montreal, Quebec H3G 2W1, Canada, Email: [email protected]

ABSTRACT: City logistics involves movement of city goods in urban areas respecting the municipal and administrative guidelines. The key goals of city logistics planning are maximizing vehicle movement and utilization, while minimizing vehicle emissions and traffic congestion. Collaboration is vital to managing city logistics operations efficiently. Collaboration can take place in the form of goods consolidation, sharing of resources, information sharing, and so on. Two categories of models are proposed to evaluate these collaboration strategies. At the macro level, we present the collaboration matrix model; and at the micro level, we present the operational level model. The macro-level model focuses on the strategic decision making process necessary for stakeholders’ collaboration given the socio-cultural characteristics, economic, and environmental constraint factors, while the micro-level model applies the collaboration decision-making criteria derived from the macro-level analytic result to improve the activities of the city logistics operators. Results of the computational testing of our methodology on vehicle selection, goods to vehicle assignment, goods distribution and environmental impact assessment are discussed, showing that the collaboration strategies of stakeholders, if optimized, can improve city logistics operations. The proposed work is novel and has strong practical applicability for logistics planners and decision makers in planning right collaboration strategies for sustainable city logistics operations.

Keywords: city logistics; collaboration planning; goods distribution; sustainability; stakeholder.

PROSIM- A PRODUCTION SIMULATION

Guy Maltais Université de Sherbrooke, Canada, E-mail: [email protected]

Michel Berthiaume Université de Sherbrooke, Canada, E-mail: [email protected]

ABSTRACT Prosim, a company specializing in the manufacture and sale of small plastic containers that can be found in almost every North American house. This company makes two types of containers: the 454-gram model, and the 907-gram model. These containers are particularly popular because they can be used to store food as well as inedible products. Moreover, they are freezer-, microwave-, and dishwasher-safe.These two products have been on the market for quite a few years and the demand is ever-increasing. The research consists in planning the manufacturing of these two products for the next year considering that this is the last year that these products are going to be manufactured this way; as of the following year, a more heavy-duty material will be used. Therefore, it is preferable to end the year with enough finished products to not lose any sale, but not too many to not have to sell them at a lower price. Considering the information known to the company, to achieve the following tasks: 1) preview, as exactly as possible, the demand for these two products for the upcoming year; 2) conceive a production plan for the next 12 months; 3) adapt and modify the production plan at the beginning of each month, considering the information gathered along the way. Criteria used to evaluate the performance will be next year’s profits.

Keywords:

UNDERSTANDING THE AGRIBUSINESS CLUSTER DEVELOPMENT USING SYSTEM THINKING: A CASE STUDY OF RED CHILI IN WEST JAVA

Tomy Perdana Faculty of Agriculture, Padjadjaran University, E-mail: [email protected]

Eddy Renaldi Faculty of Agriculture, Padjadjaran University

Trisna Insan Noor Faculty of Agriculture, Padjadjaran University

Dwi Purnomo Faculty of Agroindustrial Technology, Padjadjaran University

ABSTRACT Agribusiness cluster can be seen as geographic concentration of supply chains network. The effort of agribusiness cluster development of red chili in West Java raises some interesting questions to be discussed: (1) what component that will be the key factor of agribusiness cluster development? and (2) could the interaction of various identified components stabilize the price of red chili? This paper will discuss holistically to answer the two questions using the system thinking approach in getting the deep and clear understanding of various efforts those had been done in cluster development of red chili in West Java. The research was done in two locations and was initiated by the Representative Office of Bank of Indonesia for West Java and Banten, Garut Regency and Ciamis Regency. Used data and information were collected by action research, observation, and interview. Analysis and discussion were done using the structure policy diagram which are the improvement of causal loop diagram as a tools of system thinking approach. Stock and flow diagram which is the improvement of causal loop diagram was used as a tool in system thinking to understand the complexity of interaction and causality of various components in vegetables cluster development. The research results showed succeed of agribusiness cluster development was depended on by the interaction of six components: (1) market orientation; (2) technology innovation; (3) geographic concentration; (4) new entrepreneur in agriculture; (5) financial; and (6) multi-stakeholders’ involvement. The interaction among the six components showed that development of agribusiness cluster in long term was able to reduce price fluctuation because it could raise the supply of red chili in structured and traditional market.

Keywords: cluster, supply chain, agribusiness, case study, chilli, system thinking

AN APPLICATION OF SUPPLY CHAIN OPERATION REFERENCE (SCOR) AND ANALYTICAL HIERARCHY PROCESS (AHP) MODELS IN A SUPERMARKET

Mutia Department of Industrial Engineering, Parahyangan Catholic University, Jl. Ciumbuleuit 94 Bandung 40141, E-mail: [email protected]

Carles Sitompul Department of Industrial Engineering, Parahyangan Catholic University, Jl. Ciumbuleuit 94 Bandung 40141, E-mail: [email protected]

ABSTRACT In Indonesia, retail businesses have been growing up vastly in these few years which is indicated by a number of competition among retailers. A retailer must then perform well to be able to compete with its competitors. In order to perform well, a retailer should first measure its performance. This paper proposes an application of supply chain operation reference (SCOR) model to measure a retailer’s performance taking into account its role as a member of a supply chain. We also propose an Analytical Hierarchy Process (AHP) to measure the importance of processes in this supermarket. The application of SCOR and AHP models shows that a number of improvements can be made by the supermarket to better design its operations.

Keywords: supply chain operation reference, analytical hierarchy process, measurement, improvements.

ASSEMBLY LINE RESEARCH: A REVIEW OK KEY ISSUES AND METHODS

Glauco G. M. P. da Silva Department of Production Engineer and Systems, Federal University of Santa Catarina, Postal Code 476, Florianópolis, Brazil, E-mail: [email protected]

Dalvio Ferrari Tubino Department of Production Engineer and Systems, Federal University of Santa Catarina, Postal Code 476, Florianópolis, Brazil, E-mail: [email protected]

Silene Seibel State University of Santa Catarina, Zip Code 88035-001, Florianópolis, Brazil, E-mail: [email protected]

ABSTRACT This paper reviews the trends in assembly line research from 1960 to 2010 with the aim of identifying avenues for future investigation. Key issues and methods were examined. Although many articles suggested the use of modeling and computational experiments in balancing and sequencing assembly lines, little evidence supporting these ideas in actual practice was presented. While the trend of mixed-model lines is justified by the increasing demand for variety and customization of products, there remains the need for stronger research to translate the developed models into the operation and configuration of existing assembly lines. We concluded that the main gaps are related to the lack of applied research involving real cases and real problems, as well as a failure to consider the multidisciplinary aspects of assembly lines and how, as a result, business strategy is impacted.

Keywords: manufacturing, assembly line, literature review.

SUPPLY CHAIN SYNERGIES IN POST-MERGER ENVIRONMENTS: THE CASE OF THE UK FOOD INDUSTRY

Ioannis Manikas Systems Management and Strategy University of Greenwich, Old Royal Naval College, Greenwich London, E-mail: [email protected]

Farzeen Jaswal Systems Management and Strategy University of Greenwich Old Royal Naval College, Greenwich London

ABSTRACT Mergers are a complex phenomenon with a high failure rate inspite of the increased and more frequent mergers in companies today. There are times where more than one merger is being managed. Despite their benefits and popularity, about half of the mergers fail to achieve the desired strategic or financial objectives. One of the most important components of a successful merger is to achieve post-merger supply chain efficiency. This paper investigates the various factors that affect supply chain efficiency in post-merger environments and provides with a framework of requirements for a successful post-merger supply chain. The main aim is to assess the motives or initial expectations regarding value creation from mergers and analyze the post-merger effects of mergers on supply chain, also shedding some light on the major difficulties for the merging firms in achieving synergies regarding supply chains and managing key supply chain players in a way that maximum value can be extracted from the merger. Study is focused on the food industry in the UK. A questionnaire with 10 questions was sent out to supply chain managers of 600 people merged firms, representing approximately 40% of the overall mergers occurred in the UK Food and Beverages Industry between 2008 and 2012. 188 responses were received, representing 31% of the sample and 12% of the overall mergers between 2008 and 2012. It is found that mergers do not necessarily have a negative impact on the firms and their operational performance. In fact, this process can help in extracting many benefits by merging the two supply chains into one. Proper management, right strategy, trained workforce and good integration along the merger process can result in an efficient post- merger supply chain performance.

Keywords: Supply Chain Management, Mergers and Acquisitions, Food Industry, Post- merger efficiency.

THE APPLICABILITY OF LIFE CYCLE ASSESSMENT OF BIO- FUELS IN SOUTH AFRICA

Tatenda T. Chingono University of Johannesburg, Department of Quality and Operations Management, APB, Johannesburg, South Africa. E-mail: [email protected]

Charles Mbohwa University of Johannesburg Department of Quality and Operations Management, APB, Johannesburg, South Africa. E-mail: [email protected]

ABSTRACT The number of scientific publications devoted to biofuels is growing exponentially, and the number of reviews is increasing rapidly as well. For decision makers it has become difficult to find robust reference material and solid guidance, this study intends to make it easier. Numerous studies were reviewed and critically studied, and those that directly or indirectly considered South Africa were recorded with special attention given to GHG reduction statistics in Microsoft excel. An average of 68% GHG reduction was recorded; when land use change emission impacts were not included in the calculations. Generally the LCA, is not yet quite applicable as indicated by the low number of studies and also the fact that they are no ethanol plants and also a few officially registered bio diesel plants, that are also only producing at a relatively small scale,(>300000 liters per year). There is a clear need to reach consensus on how to carry out LCAs on biofuels driven by national and international legislation which include GHG emission reduction goals, as the scopes of various studies and systems boundaries varied greatly

Keywords: life-cycle, biofuels, greenhouse gas, South Africa.

THE APPLICATION OF GREEN SUPPLY CHAIN MANAGEMENT: CASE STUDY IN ELECTRONIC WASTE INFORMAL SECTORS IN SURABAYA CITY, EAST OF JAVA- INDONESIA

Dino Rimantho Department of Industrial Engineering, Pancasila University, Jakarta, Indonesia, Email: [email protected]

Rini Prasetyani Department of Industrial Engineering, Pancasila University, Jakarta, Indonesia, Email: [email protected]

Muhammad Hatta Department of Industrial Engineering, Universitas 45, Surabaya, Indonesia, Email: [email protected]

ABSTRACT The application of green supply chain initiatives in the informal sector recycles electronic waste in the city of Surabaya is the main objective of this paper. This paper also describes the factors that encourage the recycling of electronic waste informal sector to contribute to the green supply chain. Green supply chain is one of the methods that contribute to the reduction of environmental issues and can provide economic benefits to all stakeholders. Although it has been widely used in several business sectors, little is known about the green supply chain, especially in the perspective of recycling electronic waste in the city of Surabaya. Data were obtained from a questionnaire survey of the informal sector of electronics waste in Surabaya. The questionnaire has been validated and standardized by UNEP adopted and modified for this study. The results of the study provide information that the readiness of the supply chain suppliers (0.891), consumer’s persuade (0.845), the government contribution (0.795) and the role of non-governmental organizations (0.781) have a significant relationship to green supply chain initiatives.

Keywords: e-waste, informal sectors, green supply chain, sustainability, Surabaya.

MODEL DEVELOPMENT TO DETERMINE THE ESTABLISHMENT LOCATION OF NEW MODERN MARKETS THAT MINIMIZE THE EROSION OF TRADITIONAL MARKETS’ EXISTENCE

Febrianus D. Wibisono Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

Senator Nur Bahagia Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

ABSTRACT Since several years ago, the number of traditional markets in Indonesia has been significantly declining because of the unbalanced competition with the modern markets which were located too close to them. To address with this problem, the government issued the Presidential Regulation of The Republic of Indonesia No. 112 of 2007 that set the allowed location of modern market and obliged them to consider the existence of traditional market and small business around them through environment impact analysis. However, the implementation of this regulation is still weak because there isn’t such instrument that helps the government to determine the proper number and location of new modern markets in one area. In this paper, we used a mathematical modelling approach to solve the problem by proposing a new variant of Huff gravity model that considered the limitation of supply capacities for some commodities within several planning periods. This non-linear model gave the solutions in form of establishment location and the adjustment for traditional markets’ supply capacity, whether to increase it when there were unfulfilled demand and the investment was worth doing or to reduce it when the competition was too tight and threaten the survival chance of that market as a whole. To validate the model, we tested the model in the City of Bandung.

Keywords: location determination, Huff model, traditional and modern market.

DESIGNING EARLY WARNING SYSTEM AND SPREAD HANDLING OF DENGUE DEMORRHAGIC FEVER (DBD) USING SYSTEM DYNAMICS APPROACH AND KNOWLEDGE SHARING

Anny Maryani Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Arief Rahman Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Nurul Hudaningsih Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Dengue hemorrhagic fever or DBD is one of the contaminated tropical disease and including to a deadly disease. Surabaya is a potential town as a spreading of DBD. Based on data from East Java Health Department, on period 2006, shown that Surabaya is a town with the biggest case of DBD in East Java with 4187 cases. The number of dead due to DBD have a decrease trend, eventhough the case is increase. This is shown that the anticipating action is not working well and the preventive action is still uneffective to pressing the number of case. The causes of bad anticipation of DBD cases are time, place, and the number of case that unpredicted well. System Dynamic is a simulation approach that used to draw a complex system which involved a lot of factor and it can predicted changing of system at a time period. There are a lot important factor that need to use in order to predict the spread of DBD by the medical staff to decrease the effect of spread disease on an area. This research design the system dynamic model which can give an information of the spread DBD pattern. It’s also design the mechanism of the participation DBD spread by the knowledge sharing principle. By the early anticipation with mapping and predicting the spread of DBD disease, hopefully the effect to the infected area could be anticipated and to be done with support of effective knowledge.

Keywords: dengue hemorrhagic fever (dbd), system dynamic, knowledge sharing.

MANAGING THE SUPPLY CHAIN – ADDITIVE MANUFACTURING PERSPECTIVE

Jyri Vilko School of Business, Lappeenranta University of Technology, P.O.Box 20, 53851 Lappeenranta, Finland, E-mail: [email protected]

Antti Salminen School of Technology, Lappeenranta University of Technology, P.O. Box 20, 53851 Lappeenranta, Finland, E-mail: [email protected]

Patricia Nyamekye School of Technology, Lappeenranta University of Technology, P.O. Box 20, 53851 Lappeenranta, Finland, E-mail: [email protected]

Heidi Piili School of Technology, Lappeenranta University of Technology, P.O. Box 20, 53851 Lappeenranta, Finland, E-mail: [email protected]

ABSTRACT In modern world the supply chains are becoming increasingly long and complex. The significance of additive manufacturing is acknowledged to the global supply chain system and it has been argued to reverse this trend towards localization. While the managerial discussion of the opportunities of the technique have been going on for few years now, and the technology itself has been studied in the field there is a lack of wider scholarly discussion about the impact of AM to the supply chain. In this study, we discuss the differences between traditional and additive manufacturing supply chains from the perspective of management. The main aim is to instigate a scholarly discussion about impact of additive manufacturing on supply chain design and supply chain management. Overall, the literature covering the issue is still sparse and unfocused. While some authors have noticed the importance of the subject, only few offer frameworks or models to further analyze the change. Understanding the differences in managing traditional manufacturing supply chain and additive manufacturing supply chain can be key issue for companies to be competitive in the market place. In order to illustrate the differences in traditional and AM supply chains we put forward a framework which allows examining of the different levels of supply chain.

Keywords: Supply chain, management, additive manufacturing, product, network, perspective. COMPARISON BETWEEN FIXED ORDER QUANTITY AND PERIODIC REVIEW REPLENISHMENT FOR DISTRIBUTING LIQUID PRODUCT UNDER COMPATIBILITY CONSTRAINTS

Siti Nurminarsih Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Ahmad Rusdiansyah Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Liquid product has unique characteristics that must be considered when distributing it. In maritime distribution, it must be stored in drums or compartments which keep product form leakage, evaporation, and contamination. Several products, such as chemical must be distributed in different tankers to prevent decline in products quality due to contamination. It is less efficient when several products must be distributed to the same location. We evaluate the Fixed Order Quantity and Periodic Review replenishment methods, which companies usually do, in terms of distribution efficiency, stock position, and inventory cost in every consumption ports. To evaluate those two replenishment methods, we add variables to calculate inventory costs in previous model to optimize Multi Product Tanker Scheduling Problem (m-TSP) considering product loading compatibility constraint. In this model, we attempt to determine schedules for the tankers and the quantity of products should be loaded referring the demand received.

Keywords: multi product tanker scheduling problem, product compatibility, fixed order quantity, periodic review

UNDERSTANDING THE AGRIBUSINESS CLUSTER DEVELOPMENT USING SYSTEM THINKING: A CASE STUDY OF RED CHILI IN WEST JAVA

Tomy Perdana, Faculty of Agriculture, Padjadjaran University, E-mail : [email protected]

Eddy Renaldi Faculty of Agriculture, Padjadjaran University

Trisna Insan Noor Faculty of Agriculture, Padjadjaran University

Dwi Purnomo Faculty of Agroindustrial Technology, Padjadjaran University,

Keywords: cluster, supply chain, agribusiness, case study, chilli, system thinking

LOGISTICS SYSTEM DEVELOPMENT OF VEGETABLE PRODUCT FOR STRUCTURED MARKET : A CASE STUDY OF APACKING HOUSE

Safrani Nurfatiasari Department of Agribusiness, Padjadjaran University, Sumedang, Indonesia, E-mail: [email protected]

Kusnandar Indonesian Institute of Sciences, Jakarta, Indonesia, E-mail: [email protected]

TomyPerdana Department of Agribusiness, Padjadjaran University, Sumedang, Indonesia, E-mail: [email protected]

ABSTRACT Vegetable products logistic management requires special treatment due to the different character of the vegetable, although generally all vegetable is vulnerable both physically and biologically.On the other side, market demands keep expecting vegetable product distributed to consumer in high quality shape and continuously supplied. The purpose of this research is to develop optimum logistic system model in MekarMulya Packing House, which manage 6 vegetable commodity, beef tomato, tw tomato, carrots, broccoli, cabbage, and mustard, produced by local farmer to be sold in structuralized market. All commodities must be distributed each day, on calculated quality and quantity upon harvest time requirements, post-harvest management and one-day shipment. Research has been conducted using appropriate center of gravity method to set distribution point on cluster network or producer location spread on certain geographical area.All logistic system has been analyzed using discrete event simulation approach, which is simulation with status change from simulation model, happened on different points caused by the case. The result of the research indicated that the current logistic activity has not been optimum yet. Logistic system that integrates post harvest management activity and harvest transport system is the optimum logistic for the Packing House. The system can provide positive effect on product demand fulfillment, farmer productivity, and logistic expenses.

Keywords: agriculture logistics management, model of logistics system, center of gravity, discrete event simulation

A HYBRID METAHEURISTIC FOR THE MULTIPLE-CHOICE MULTIDIMENSIONAL KNAPSACK PROBLEM

Chi-Leung Chu Taiwan National Chiayi University, E-mail: [email protected]

Vincent Li Taiwan National Chiayi University, E-mail: [email protected]

ABSTRACT This paper studies the multiple-choice multidimensional knapsack problem (MMKP), a variant of the well-known multidimensional knapsack problem. Belonging to the class of NP-hard problems, finding a solution for MMKP by any exact algorithms may not be efficient. Hybrid approach that combines heuristic and exact algorithm has gained its popularity recently. Various hybrid approaches have been developed for NP-hard problems and promising results are reported. Motivating by the success of such approaches, this project develops a hybrid approach for solving MMKP. Specifically, an LP relaxation of the MMKP problem is generated iteratively. Based on the reduced costs obtained from the LP relaxation problem, a set of variables is chosen in which these variables are fixed to their exact values. The reduced problem is then solved to optimality using CPLEX; and a new LP relaxation problem is developed by selecting one of the branching nodes generated by CPLEX. This process is repeated until the stopping criterion is met. To evaluate the effectiveness of the proposed hybrid approach, numerical experiments are performed. Experimental results show that the proposed hybrid approach provides promising results.

Keywords: multiple-choice constraint, multidimensional knapsack problem, LP relaxation, variable fixing, reduced cost

THE EFFECT OF RANDOM YIELD OF PRODUCT RETURNS TO THE PRICING DECISIONS FOR SHORT LIFE-CYCLE PRODUCTS IN A CLOSED-LOOP SUPPLY CHAIN

Shu San Gan Department of Mechanical Engineering, Petra Christian University Surabaya 60213, E-mail: [email protected] Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Nyoman Pujawan Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Suparno Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Basuki Widodo Department of Mathematics, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Remanufacturing is one of the product recovery processes which transforms used-product into “like-new” condition. It could extend the product’s useful life and could help reducing huge amount of short life-cycle products’ wastes. Pricing decision is an important aspect of successful remanufacturing which would secure the firm’s profitability. However, the uncertainty in materials recovered from product returns is one among the complicating characteristics. Unlike remanufacturing for consumer returns and business-to-business (B2B) returns, remanufacturing for end-of-use products needs to cope with high uncertainties in quality and quantity of the acquired product returns. Therefore, after inspection, only a fraction of returns can be recovered through remanufacturing operation. Random yield of product returns also influences the decisions in acquisition, wholesale, and retail prices. We propose a pricing model that accommodate the effect of random yield of product returns to the pricing decisions for short life-cycle products in a closed-loop supply chain, under random demand. The system consists of a retailer, a manufacturer, and a collector of used-product under multi-period setting. Demand functions are random, time- dependent, and price-sensitive; both for new and remanufactured products. Yield of product return is random with known probability density function and cumulative distribution function. Sequential decision approach is undertaken to find the optimum pricing decision that maximize the supply chain profit, with pricing game that puts manufacturer as a Stackelberg leader. The results indicated that remanufacturing cost, manufacturer’s shortage penalty, and yield factor randomness influence the pricing decisions. Keywords: remanufacturing, pricing, short life-cycle product, yield of product return, sequential approach.

MODELINGVALUE AT RISK (VAR) POLICIES FOR TWO PARALLEL FLIGHTS OWNED BY THE SAME AIRLINE

Oki Anita Candra Dewi Department of Engineering Management, Semen Indonesia School of Management (STIMSI), Gresik 61122 Indonesia, E-mail: [email protected]

Ahmad Rusdiansyah Department of Industrial Engineering, Institut Teknologi Sepuluh November, Surabaya 60111 Indonesia, E-mail: [email protected]

Naning A. Wessiani Department of Industrial Engineering, Institut Teknologi Sepuluh November, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT This study develops a risk policy in AirlineRevenueManagement (ARM). ARM related to airline demand management policies to estimate and classify the various requests of pricing and capacity control. We made a model of theoptimal policyvalue at risk(VaR) fortwoparallelflights owned by the sameairline. The two parallel flights is a condition which an airline operates two flights in the same departure date with different time schedule. VaR is the worst possible losses under normal market conditions during the some period and certain confidence level. We specifically discuss the revenue risk policy for joint dynamic seat allocation problem including operational risks such as seat allocation risk. Moreover, in this proposed model, we also deal with passengerchoice behaviour. We attempt to optimize VaR in determining seat allocation policies of both flight such as (i) improving revenue targets, (ii) choosing the best result for a given confidence level. To implement the model, we develop a dynamic programming algorithm for a set of expected revenues. We conduct some numerical experiments to show the behaviour of this model.

Keywords: airline revenue management, paralellel flights, seat allocation risk, value at risk.

RESEARCH ON MANUFACTURER’S AFTERMARKET SERVICECOMPETITION STRATEGY OUTSIDE THE WARRANTY PERIOD

Xumei Zhang School of Economics & Business Administration, Chongqing University, Chongqing 400044, China Chongqing Key Laboratory of Logistics at Chongqing University, Chongqing 400044, China, E-mail: [email protected]

Xiuzhou Zhang School of Economics & Business Administration, Chongqing University, Chongqing 400044, China, E-mail: [email protected]

Molin Liu School of Economics & Business Administration, Chongqing University, Chongqing 400044, China, E-mail: [email protected]

ABSTRACT With the development of society, service has become a new competitive factor for manufacturing enterprises. Many manufacturing enterprises have developed aftermarket service, and aftermarket service has become an important source of profit for them. However, manufacturers face competition from third party independent aftermarket service providers when they provide aftermarket service for customers outside the product warranty period. Considering aftermarket service price and aftermarket service level affect aftermarket service demand, a Stackelberg game model led by manufacturer was established. The aftermarket service price competition and aftermarket service level competition between manufacturer and third party independent service provider outside the product warranty period were studied. The impacts of intensity of aftermarket service price competition and aftermarket service level competition on the aftermarket service decision- making of manufacturer and third party independent service provider were analyzed.The results show that when the intensity of aftermarket service price competition between manufacturer and third party independent aftermarket service provider is relatively small or relatively large, manufacturer’s aftermarket service price is higher than third party independent aftermarket service provider’s. When the intensity of aftermarket service level competition between manufacturer and third party independent aftermarket service provider is relatively small or relatively large, manufacturer’s aftermarket service level is higher than third party independent aftermarket service provider’s. The effectiveness of the model was verified by numerical analysis.

Keywords: Aftermarket service, competition strategy, the intensity of service competition.

ANALYSIS OF OPTIMALITY AND DEVELOPMENT OF PRIORITY DISPATCHING METHOD TO MINIMIZE TOTAL TARDINESS FOR UNRELATED PARALLEL MACHINES SCHEDULING

Victor Suhandi Department of Industrial Engineering, Maranatha Christian University, Bandung 40164 Indonesia, Email: [email protected]

ABSTRACT Research on jobs schedulingonparallelmachineshas beenvery diverse. There areproblemsin whichajobhas adifferentprocessing timewhen itwas doneon a different machine. The problem thatarisesis theassignment of machine whichwe chooseto do the joband alsoschedule jobs on machines. The performance measureistotal tardiness. We use priority dispatching(PD) method. This method is aheuristicmethod. This methodcanhandleverylargeproblemsandis expected togivegood results. This methodschedulesjobsone byone. Criteria usedin selecting acoupleof jobandthe machine which areassigned, respectively, are: jobsthat will surelyexperience tardiness; jobs which have least number of preferences that not to be tardy; least readytime;load ofmachines that count from the sum of thetime of all jobsthatstillmay bedoneon each machines; and thedue date. Assessmentresultsofthismethodare done bycomparing thetotal tardinessproducedby the first come first serve(FCFS) method andgenerateandtestmethod(G &T). FCFSmethod is a representation ofa very simple methodthat isfrequentlyusedin practiceandthe results areusuallyfarfromoptimal. Meanwhile, the G&Tmethodis an enumeration method togenerateall combinationsandtestin order to obtainoptimal results, but this method is onlyable to handlea simpleproblem. The G & T method uses depth first search (DFS) strategy and combines it with backtracking. If the resultsof thePD are close toG&T, it meansPDmethod isclose to optimal, but insteadwhen they are awayfromG&Tandcloser totheFCFS method, it means it is farfromoptimal. Testing datawas conducted by usingrandom numbersfora hypothetical6jobsand3machinesthatare stillfeasibleusing theG&T.The processing time isgeneratedwithrandom numbers which have uniform(15, 25) and thedue dateof eachjob is uniform(30, 50). It isgenerated tomake the possibility of tardiness occurrences. Eachmachine has to process about2jobsso thatthe duedate is givenin the range of2 times of theprocessing timeof eachjob. The resultsobtained by thePDmethodhavethe optimality closeness of91.75% (excellent) forthe casewhere eachjob can bedone on all machines. And for the casewhereeach jobcannotbe processedonall themachines, it gets the optimality closenessvalueat50.42% (less good).

Keywords:Scheduling, unrelated parallel machines, priority dispatching, optimality closeness

A HEURISTIC ALGORISM FOR VEHICLE ROUTING PROBLEM WITH OUTSOURCING OPTIONS

Kazuki Yamada Dept of Business Design and Management,Creative Science and Engineering,Waseda University, E-mail: [email protected]

Shunichi Ohmori Dept of Business Design and Management,Creative Science and Engineering,Waseda University, E-mail: [email protected]

Kazuho Yoshimoto Dept of Business Design and Management,Creative Science and Engineering,Waseda University, E-mail: kazuho@waseda .jp

ABSTRACT Logistic environment is changing in two major points. Firstly the standing point of logistics cost, many companies outsource their logistics. Tariff and charge free for no loading running are important change in cost structure. These change the optimal delivery route and the number of trucks. The new optimal route doesn’t depend on travel distance and efficiency of lording capacity. Secondly change is the size of logistics network problem grows huge by increase the number of customers and products. The so many orders increase combination number of logistics network problem. This cause increase response time and decrease the precisionin numerical calculations. Previous algorithms can’t solve current logistics net work problem within the realistic time limit. And most of previous heuristic algorithms are based on small logistics. Then it can’t optimize huge size logistics network problem with tariff and charge free for no loading running.This paper proposed new heuristic algorism. Proposed algorithm has two phases. First phase intended to rectilinear route that make best use of volume discount. Second phase intended to improving inefficient overgrown route. In this paper ran two experiments as a performance test of proposed algorithm. The result of numerical experimentations show proposed algorithm is more fast and precision in huge size logistics network problem with outsourcing options.

Keywords: logistic, supply chain management, heuristic.

AN APPROACH TO IMPROVE ROUTING DECISIONS IN QUEUEING NETWORKS

Thunyarat (Bam) Amornpetchkul Graduate School of Business, National Institute of Development Administration, Bangkok Thailand, E-mail: [email protected]

ABSTRACT In a queueing network with multiple heterogeneous servers, there may be more than one server who has the capability to handle an arriving customer. The decision to which server the customer should be assigned to can significantly influence the overall efficiency of the system as well as the customer responsiveness. To pave the way for a more efficient and implementable routing policy, this study considers a routing problem in a queueing network with parallel servers and time-sensitive customers, and provides a structural property of an optimal routing policy which minimizes the average expected wait time of the customers in the system. Based on the analytical result, a simple routing policy is proposed and numerically tested with a large-scale scheduling problem.The proposed policy assigns an arriving customer to the server with the shortest sum of wait time and service time. This policy is shown to provide a reasonable improvement in customer wait time over the classic routing policy which always sends an arriving customer to the server with the shortest current wait time.

Keywords: routing policy, scheduling, queueing.

MODELLING REVENUE SHARING CONTRACT OF FRESH VEGETABLES BETWEEN URBAN FARMING COOPERATION AND RETAILERS

Ahmad Rusdiansyah Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

Winda Narulidea Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Sales of perishable products is one of the most important sources of revenue in the retail grocery industry. Currently, urban farming becomes an interesting issue in agribusiness as an alternative for the people of the city in utilizing the limited land. The effort to bring the products closer to market allow the agricultural products to be sold at a cheaper price and better quality product due to the distribution distance become shorter. To win the competition among companies, it requires coordination between all players in supply chain. Supply chain contracts facilitate the coordination by designing the parameters of contract so that each player in supply chain should act with the aim of obtaining the optimal solution for supply chain. We develop a revenue sharing model to allocate the profit and risk sharing between supply chain players in urban farming products, by considering deterioration that reduces the freshness level, while the market demand is dependent to product price and freshness level. So when the product becomes less fresh, the price discount should be given to maintaining the same level of demand. The developed model can become a helpful instrument for fresh-product supply chain managers to obtain maximum supply chain profit and achieve a better coordination among supply chain players.

Keywords: Revenue Sharing Contract, Urban Farming, Fresh-product.

PRODUCTION AND TRANSPORTATION SYSTEM FLEXIBILITY MODELING

Reina Angkiriwang Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

I Nyoman Pujawan Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Budi Santosa Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Flexibility is one of the important things needed to deal with uncertainties like demand change. Much works have been done to establish definition and dimensions of supply chain flexibility. However, there is still lack of modeling flexibility in the context of a supply chain. This paper develops model for production and transportation system flexibility as a way of addressing uncertainty in a supply chain. Production system flexibility is modeled via production capacity, quantity produced and inventory level. On the other hand,flexibility in the transportation system flexibility is achieved through the use of different transportation mode to fulfill the demand. Several demand scenarios that reflect different level of fluctuation will be considered and the model will select an optimal level of production capacity, quantity to produce and shipment quantity for each transportation mode. Transportation elements like lead time, capacity and availability are also considered. We consider different supply chain flexibility scenario, for example by holding more inventory at different supply chain stages and the capacity of each transportation mode. Numerical example is provided to demonstrate the different type of flexibility needed in a supply chain under different environment. This paper provides insights on the impact of different flexibility strategies bring to a supply chain by investigating the sensitivity of the model outputs with respect to changes in market environment under deterministic but fluctuated demand situation.

Keywords: supply chain flexibility, flexibility model, production flexibility, transportation flexibility, demand uncertainty.

MODEL OF CROP PRODUCTION PLANNING CONSIDERING CROP ROTATION

Ahmad Rusdiansyah Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

Virhanty Ernita Sukma P. Department of Industrial Engineering, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Planning the production of agricultural products depends not only on the accuracy of the planned timing of planting and harvesting of plants, but also to consider the ecological aspects which have never been considered to have an important role. Ecological aspects in the planning of production affect the productivity of arable land used as a planting medium. In addition, ecological aspects are also capable of supporting sustainable agriculture systems. For that in this study will be conducted crop rotations planning and production of agricultural products in urban farming with the consideration of ecological constraints, the availability of arable land, crop yield, planting period, and crop production time.

Keywords: Crop rotation, Production planning, Urban Farming.

A LOWER BOUND ANALYSIS FOR THE FLOWHOP SCHEDULING PROBLEM WITH MINIMIZATION OF MAKESPAN

Carlos Ernani Fries Department of Production and Systems Engineering, Federal University of Santa Catarina, Florianopolis, SC, Brazil, E-mail: [email protected]

Bruno de Sousa Alves Department of Production and Systems Engineering, Federal University of Santa Catarina, Florianopolis, SC, Brazil, E-mail: [email protected]

ABSTRACT The Flowshop Scheduling Problem (FSP) has attracted researchers’ attention since Johnson's seminal paper (1954) which deals with the scheduling of N jobs in a two-machine shop considering makespan minimization. To undertake the remarkable variety and complexity of FSPs with large N and M machines (M>3), several heuristics and optimization models have been developed. Lower bound (LB) measures have also been included in complex search algorithms to derive interesting solutions in acceptable time. Most of these procedures consider makespan minimization as natural criterion to generate scheduling plans. This paper deals with an analysis of a LB measure for makespan in flowshop facilities and its value to generate good estimation of rough capacity requirements in the Master Production Scheduling (MPS) level. The methodology consisted in the simulation of several instances of a general flowshop with number of jobs and machines varying from 10 to 1,000 and processing times following uniform and exponential distributions. For each instance, the LB measure for makespan has been evaluated and compared to the performance of the Campbell-Dudek-Smith heuristic. Results show that the LB measure is quite sensitive to jobs processing times distribution, number of jobs and number of machines in the flowshop system. The discrepancies between the heuristic solution, optimal solution, and LB measure, tend to increase until NM, with largest discrepancy observed for N=M. The divergences tend to be larger even when considered greater variability on processing times. Furthermore, LB makespan measure has been combined with a multiplicative factor. Simulations show that in this case, 70% (90%) of all generated problems reveal feasible MPS plans when using a rough capacity given by more than 140% (150%) of LB.

Keywords: lower bound analysis, flowshop scheduling, capacity planning, master production scheduling.

DEVELOPMENT OF PARTICLE SWARM OPTIMIZATION ALGORITHM TO OPTIMIZE DISPERSION BATCH ON A PRODUCTION PROCESS

Misra Hartati Department of Industrial Engineering, Faculty of Sciences and Technology UIN Suska Riau Indonesia E-Mail : Pekanbaru 28293 Indonesia, E-mail: [email protected]

Iwan Vanany Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Surabaya 60111 Indonesia, E-mail: [email protected]

Budi Santosa Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111Indonesia, E-mail: [email protected]

ABSTRACT The issue of food safety crisis is becoming world's attention nowadays. Food retraction due to safety issues has emerged regulations regarding traceability, particularly in the United States and the European Union. To handle this, a system that provides detailed information about the positioning of the products and distribution channels is developed, in order to facilitate product tracking efforts, the system is called a system of traceability. Traceability system is designed to minimize the cost of the food safety crisis. Therefore, this system should be installed in companies generate minimal cost in food safety crises. This research elaborates the internal trace ability, which is the batch arrangement of a production process. It is aimed to minimize batch dispersion and determine the optimal batch quantity. PSO (Particle Swarm Optimization) algorithm is expected to find Gbest (best value) of the determined objective function. Research was conducted on the production of sausages in one of the French food companies, with a 4-level product characteristic (raw materials, components, semi-finished products and finished products). From the conducted research, the proposed PSO algorithm has obtained the optimal number of dispersion that occurs in the production process of 4-level product characteristic in large-scale, which is amounted to 128 dispersions (54 downward dispersions and 74 upward dispersions). This minimum value of dispersion is expected to reduce product contamination of the product as well to minimize the costs.

Keywords: Food safety crisis, internal traceability, meta heuristics, PSO (Particle Swarm Optimization), traceability.

SIMULATION MODEL TO OPTIMIZE THE SUPPLY CHAIN CONFIGURATION FOR MITIGATING RISKS WITH COMMON PARTS

Tomotake Kurosawa Dept of Business Design and Management, Creative Science and Engineering, Waseda University, E-mail: [email protected]

Shunichi Ohmori Dept of Business Design and Management, Creative Science and Engineering, Waseda University, E-mail: [email protected]

Kazuho Yoshimoto Dept of Business Design and Management, Creative Science and Engineering, Waseda University, E-mail: [email protected]

ABSTRACT In this paper, we consider how common parts contribute to mitigation of the supply chain risks. As the risks incurred to companies have been increasing in association with globalization, supply chain reconfiguration is now one of the top priorities of manufacturing company’s business continuity. In order to solve this problem, many companies are interested in developing common parts which can use at several products. If a company develops common parts in several products, the influence of the parts becomes more serious. Common parts cannot mitigate the supply chain risks without determining the appropriate number of suppliers and inventories. We develop a supply network simulation model that helps decisions making of companies for supply chain configuration, including not only developing common parts, but also duplicating suppliers, enhancing risk-resistance and adding inventories.We propose an algorithm to find the optimal combinations of mitigation plans using Simulated Annealing. In the case study, we apply our model to the Digital Camera supply chain.

Keywords: Supply Chain Risk and Uncertainty, Simulated Annealing, Simulation, Common Parts

RESEARCH ON MANUFACTURER’S PRICE AND SERVICE STRATEGY UNDER GRAYMARKET CONSIDERING GOVERNMENT SUPERVISION

Xin Yin School of Economics and Business Administration, Chongqing University, 174 Shazhengjie, Chongqing, China, E-mail:[email protected]

Bin Dan School of Economics and Business Administration, Chongqing University, 174 Shazhengjie, Chongqing, China, E-mail: [email protected]

Haiyue Zhang School of Economics and Business Administration, Chongqing University, 174 Shazhengjie, Chongqing, China, E-mail:[email protected]

ABSTRACT This paper considers a supply chain system consisting of a manufacturer with her authorized retailers, an unauthorized intermediary and the regional government. Aim at the problem of the manufacturer’s price decision and service strategy in two markets under graymarket,the demand function influenced by the consumer acceptance of gray goods and the manufacturer and the unauthorized intermediary’s profit model are established. By analyzing and discussing the effects of government supervision on manufacturer’s pricing decision and service strategy, this paper proposes the manufacturer’s optimal price and service strategy.The results show that if the government increases supervision the manufacturer will benefit while products demand and profits of the unauthorized intermediary will decrease. Thus, the government will achieve the target of combating graymarket transaction. Besides, the manufacturer’s service level when the government does not provide any protection against the graymarket is as same as the level when the government provides complete protection. The service level will be higher when the government provides incomplete protection. Furthermore the results are examined by numerical examples.

Keywords: gray market; supply chain; pricing decision; service strategy

ON-LINE VEHICLE ROUTING PROBLEM WITH HETEROGENEOUS VEHICLES, TIME WINDOWS AND ROAD NETWORK CONSTRAINTS

Suprayogi Research Group on Industrial System and Techno-Economics, Faculty of Industrial Technology, InstitutTeknologi Bandung, Bandung, Indonesia E-mail: [email protected]

Muhammad NashirArdiansyah Department of Industrial Engineering, Telkom University, Bandung, Indonesia E-mail: [email protected]

ABSTRACT This paper deals with an on-line vehicle routing problem (VRP) in order to consider real- time variations in travel times. Other characteristics of the VRP discussed in this paper are heterogeneous vehicle, time windows, and road network constraints. The problem addressed in this paper is divided into two stages, i.e., planning and execution stages. The planning stage (also called as off-line stage) aims to design a set of vehicle routes to minimize total cost. In this planning stage, it is assumed that all relevant parameters are known in advance. In the execution stage (also called as on-line stage), the vehicle routes designed beforehand are implemented and the traffic jams may happen on some road segments causing longer travel times. The new route of a particular vehicle must be determined to minimize the travel time and lateness. A solution framework isdeveloped and implemented in the application softwareunder Geographical information System (GIS) environment. To show the applicability, the solution framework is tested using a hypothetical instance.

Keywords: On-line vehicle routing problem, Shortest path problem, Heterogeneous vehicles, Time windows, Road network constraint.

VEHICLE SCHEDULING AND ROUTING AT A CROSS- DOCKING WAREHOUSE: A META-HEURISTIC-BASED APPROACH

Rajesh Piplani Nanyang Technological University, Singapore, [email protected]

Dwi Agustina Nanyang Technological University, Singapore, [email protected]

ABSTRACT Cross-docking warehouses are increasingly used in supply chains distributing perishable products as the products have short shelf-life. The objective of this research is to study the operations of a cross docking warehouse, and optimize the scheduling and vehicle routing operations at the warehouse to ensure that the products are delivered just in time and with minimum cost of delivery. This research focuses on the integration of vehicle scheduling and routing, considering product consolidation and delivery time windows. The system is modelled as a mixed- integer linear program. The proposed model (VRSP) is created in CPLEX but can only be solved for small sized problems. The model is then modified by incorporating the concept of customer zones and applying hard (instead of soft) time windows for delivery (VRSP-CZHTW). The VRSP-CZHTW model can be solved using CPLEX in a reasonable amount of time even for large scale problems. Future research is looking at using meta-heuristics based approaches to solve the large-scale models.

Keywords: cross-docking, delivery window, product consolidation, MILP.

SETTING PRICE AND INVENTORY FOR RETAIL CHAINS OF FASHION APPAREL

Vincent Li Taiwan National Chiayi University, E-mail: [email protected]

Yat-Wah Wan Taiwan National Dong Hwa University, E-mail: [email protected]

Yicheng Lin Taiwan National Chiayi University, E-mail: [email protected]

ABSTRACT Pricing is a very important driver in revenue management, especially for fashion apparel retailers. In this article, we examine markdown pricing schemes for a multi-store, multi- period setting. We are to determine the inventory allocation from the distribution center to each of the outlets and the price for each store in each of the periods. The problem can be solved exact by dynamic programming. However, due to the problem’s complexity, we design an iterative heuristic. Inventory allocation is first determined by given price vectors across multiple periods in each of the outlets, and then the price vectors are selected by considering the mean demand of each store in each period. We iterate the heuristic until either the inventory allocation or the price converges.

Keywords: markdown pricing, retail chains, dynamic pricing, heuristics.

STRATEGIC IDLING AND DYNAMIC SCHEDULING IN AN OPEN-SHOP SERVICE NETWORK

Oded Berman Canada University of Toronto, E-mail: [email protected]

Opher Baron Canada University of Toronto, E-mail: [email protected]

Dmitry Krass Canada University of Toronto, E-mail: [email protected]

Jianfu Wang Canada University of Toronto, E-mail: [email protected]

ABSTRACT This paper, motivated by collaboration with a healthcare service provider focuses on stochastic open-shop service networks with two objectives: more traditional macro-level measures such as minimizing total system time or minimizing total tardiness and the atypical micro-level measure of reducing the incidents of excessively long waits at any workstation within the process. While work conserving policies are optimal for macro-level measures, scheduling policies with strategic idleness (SI) might be helpful for the micro-level measure. We provide several theoretical results of strategic idleness for a very simple service network. Using the empirical data provided by the service provider, we give statistical evidence that SI is used by its schedulers to effectively manage the micro-level measure. Our primary goal is to develop a systematic framework for the joint usage of dynamic scheduling policies (DSPs) with SI. We provide an efficient way to combine the SI and DSP such that the resulting policies can simultaneously address both macro- and micro-level measures. We use a simulation model based on empirical data to demonstrate that an open- shop service network can be managed in a systematic fashion to deliver improved service level by the joint usage DSPs and SI.

Keywords: healthcare service network, strategic idleness, dynamic scheduling policy, open shop.

SHIFT SCHEDULING MODEL DESIGNED TO LEVEL WORKLOADS OF EMPLOYEES

Kazuki Fujita Department of Industrial and Systems Engineering, Aoyama Gakuin University,Kanagawa252-5258Japan, E-mail: [email protected]

Kakuro Amasaka School of Science and Engineering, Aoyama Gakuin University, Kanagawa252-5258Japan, E-mail: [email protected]

ABSTRACT Personnel costs make up a high percentage of the total operating costs at hotels and Japanese-style inns, so keeping those costs down is a critical management issue for these establishments.Within these businesses, restaurants in particular depend heavily not only on their menu selections and ingredients, but also on the level of staff service for customer satisfaction. Putting together a shift schedule designed to provide peak customer service requires a considerable number of staff members and therefore higher personnel costs. This paper addresses this issue by investigating the nature of restaurant jobs at highly classical luxury hotel restaurants, ultimately proposing a Shift Scheduling Modeldesigned to level workloads of employees in restaurant service at these establishments. This model creates shift schedules that minimize labor costs while measuring improvements in employee satisfaction as a result of equally distributed workloads among individual workers. Further, it does not rely on subjective personal experience or other unspoken rules that have traditionally guided the shift scheduling process. Specifically, the author conducted logistic research analysis based on data, such as sales results and day of the week, to create a model that estimates workload. Next, mathematical programming methods are used to create shift schedules designed to level the workload and minimize labor costs.The authors then make use of the insights gained through this process to verify the effectiveness of this Shift Scheduling Model, and obtain the desired results.

Keywords: shift scheduling, workloads, personnel costs, mathematical programming.

MODIFIED PARTICLE SWARM OPTIMIZATION FOR SOLVING MULTI-OBJECTIVE LIMITED-WAIT HYBRID FLOW SHOP SCHEDULING PROBLEM

Budi Santosa Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Fiqihesa Putamawa Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia

Nurhadi Siswanto Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia

ABSTRACT The production sequence selection becomes a problem when the number of feasible sequences is getting bigger. The big number of jobs to be scheduled makes a problem in hand becomes hard. The process of finding the best production sequence is called as a scheduling problem. The condition when several machines are arranged in series and each job must be processed at each machine with same sequence is called flow shop scheduling problem. Since the existing model cannot represent the real production system accurately, flow shop scheduling model always grows to cope with. Since flow shop scheduling is a NP-Hard problem then the most suitable method to solve is metaheuristics. One of metaheuristics algorithm is Particle Swarm Optimization (PSO), an algorithm which is based on the behavior of a swarm. Originally, PSO was intended to solve continuous optimization problems. Since flow shop scheduling is a discrete problem, then, we need to modify PSO. The modification is done by adding Transition Matrix. While to handle multi objectives problem, we use Pareto Optimal (MPSO). The results of MPSO is better than the PSO because the MPSO solution set have bigger probability to find the optimal solution. Besides the MPSO solution set is closer to the optimal solution.

Keywords: limited wait, hybrid flow shop, particle swarm optimization, transition matrix, pareto optimal.

ORGANISATIONAL CHALLENGES IN INTEGRATING CUSTOMER COLLABORATION PROCESSES AND PRACTISES IN THE SUPPLY CHAIN

Merja Airola VTT Technical Research Centre of Finland, P.O.Box 1307, FIN-33101 Tampere, E-mail: [email protected]

Jukka Hemilä VTT Technical Research Centre of Finland, PL 1000, 02044 VTT, E-mail: [email protected]

ABSTRACT In this paper, we investigate the challenges of customer collaboration in the context of the supply chain of manufacturing industry. The aim of this case study is to increase understanding ofthe main organizational problems faced by a main contractor in creating novel customer collaboration practices in the supply chain. Our preliminary results reveal that the enhanced customer collaboration affects the supply chain and the main processes of the main contractor. We argue that main contractors should integrate and update their collaboration processes and practices togetherwith the supply chain for all actors, including customers, to increase the efficiency and customer understandingin the supply chain.

Keywords: Organizational development, customer collaboration, supply chain

COLLABORATIVE PRODUCTION DISTRIBUTION NETWORK MODEL FOR AUSTRALIAN SMMEs: RESEARCH CHALLENGES FOR THEIR COMPETITIVENESS

Mohammad Rizal Firmansyah The School of Engineering, University of South Australia, Adelaide 5095, Australia, E-mail: [email protected]

Yousef Amer The School of Engineering, University of South Australia, Adelaide 5095, Australia, E-mail: [email protected]

ABSTRACT Australian small and medium manufacturing enterprises (SMMEs) play significant role in the country economy. The contribution of the companies to the manufacturing value is around 50% beside 62% for manufacturing employment in the manufacturing sector. Hence, it is important for this type of company to survive and competitive especially in the dynamic global environment. The result of analysis of SWOT and Porter’s five forces model for Australian SMMEs using information from some references reveals that the companies need some help from the research and educational institution in terms of the development of an appropriate model of collaboration which considered the SMMEs capabilities and conditions. In the literatures, the discussion on collaboration models are not specifically designed for SMMEs thus it does not considered the characteristics of SMMEs in their model. The design of this collaboration model for Australian SMMEs is challenging as the appropriate model must consider some characteristics of the companies. The model must consider the internal and external condition of Australian SMMEs so that the designed model must be easy to use, simple and flexible, it does not require an investment or at least require minimum expenses for getting involved in the collaboration and it does not require the complicated use of the internet and or computer.

Keywords: collaboration model, production distribution network, SMMEs.

SUPPLY CHAIN COLLABORATION FOR ENSURING RETAIL PRODUCT AVAILABILITY AT GLAXOSMITHKLINE

Meinar Dyan Muslimah School of Business and Management, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

Togar M. Simatupang School of Business and Management, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

ABSTRACT The growth of pharmaceutical industry in Indonesia combined with growth of modern retail leads GlaxoSmithKline, as one of the largest pharmaceutical multinational corporation faces the increasing of demand uncertainty. During year 2013, average order fulfillment by APL warehouse was 81% and resulting average 16% stock out in Jakarta and West Java PT Bisnis Retail outlet. This research aims to develop a process simulation model for determining the best possible business solutions to decrease retail out of stock by improving supply chain collaboration amongst GlaxoSmithKline, APL, and PT Bisnis Retail in retail. Actual data of demand and supply in 2013 was used to modeling existing system. Root cause analysis showed that root causes were: set low minimal stock retail outlet, adjust purchase order without information sharing, several payment that not paid right on the time, human error or local fraud, and unresponsive discussion of control result. The possible solutions that have been made are: set higher minimal stock in outlet, forecast updates sharing using sharing information system, 100 % on time payment, perform new regulation for SKU control system, and Intensive control result evaluation in managerial level with virtual meeting. Purposed solutions were examined using Monte Carlo simulation with result 82% of order fulfillment and 10% of retail out of stock.

Keywords: supply chain collaboration, pharmaceutical product distribution, order fulfillment, stock out, Monte Carlo simulation, GlaxoSmithKline.

SUPPLIER-CUSTOMER COLLABORATION IN EMBEDDED SYSTEMS ENGINEERING PROCESSES – PRINCIPLES AND CASE STUDY

Jukka Hemilä Business Ecosystem Development, VTT Technical Research Centre of Finland P.O. Box 1000, Tekniikantie 2, 02044 VTT, Finland,E-mail: [email protected]

Merja Airola Business Renewal in Organisations and Networks, VTT Technical Research Centre of Finland, P.O. Box 1000, Tekniikantie 2, 02044 VTT, Finland,E-mail: [email protected]

Juha Vanhanen Oy M. Haloila Ab Ruskontie 16, 21250 Masku, Email: [email protected]

ABSTRACT Embedded systems are composed of mechanical, electronic and software components. Only a smooth integration of these parts can ensure their functionality and should be the basis for a successful business concept. The development processes for embedded systems have to ensure multi-disciplinary, multi-lifecycle, multi-site and multi-organisation at the same time. The value chain of embedded systems comprises the system provider, service providers as development partners or subcontractors, and tool providers for optimal leverage of development resources. Also customer interface cooperation should be improved for understanding customer needs and tailoring customer-specific solutions. This paper describes the embedded systems’ engineering challenges in the collaborative supplier- customer value chain. Itdescribes how to utilise a generic framework for embedded systems engineering processes development in a single case study. Our research context is a medium-sized Finnish embedded systems provider.

Keywords: Engineering processes, embedded systems, value chain.

FRAMEWORK FOR COLLABORATION AMONG PORTSTAKEHOLDERS: LITERATURE REVIEW AND CASE STUDY

Adi Budipriyanto Bakrie University, Jakarta Doctoral Student at Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected] Budisantoso Wirjodirdjo Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected] Nyoman Pujawan Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected] Saut Gurning Department of Marine Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Port is the main link in the distribution and transportation systems, and as an interface between sea transportation and other transportation modes. Competitive position of the port is not only determined by internal forces, but also influenced by the performance of the supply chain network. Port performance is affected by the strategy adopted by each of the stakeholders. Each stakeholder in each entity has a different purpose, interests, policies, management and ownership and there may be collaboration as well as competition and rivalry among them. Port does not only play an integral component of the transportation system, but also as a major sub-system of the global production system, an important node in the supply chain and a key component in determining the competitiveness of a country's economy. Therefore, collaboration between stakeholders of the port became an important and strategic issue to be discussed. Collaboration can determine the efficiency and effectiveness of operations of each entity, and may improve the overall performance of port operations, which in turn can improve the competitiveness of the port. In the supply chain literature, collaboration has been a topic much disccused, but collaboration involving port stakeholders only received very little attention. This paper presents a framework for collaboration between port stakeholders based on existing literature, and presents a case study of collaboration among them.We investigate current conditions, opportunities, barriers and challenges in the implementation of collaborative strategies. The application of windows slots system, berth guaranty, and a dedicated terminal in the port operations and how these could improve resource utilization are among collaborative issues that are discussed. Keywords: port collaboration, horizontal collaboration, vertical collaboration, resource sharing, case study.

A CASE STUDY ON PROCESS MINING IMPLEMENTATION IN MODELLING SUPPLY CHAIN BUSINESS PROCESS: A LESSON LEARNT

Mahendrawathi ER Department of Information Systems, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

Hanim Maria Astuti Department of Information Systems, Institut Teknologi Sepuluh Nopember, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT More and more supply chain business processes are now supported by IT, but there are still ongoing debate on the exact value of IT in supporting supply chain operation and eventually performance. As supply chain emphasizes on managing interconnected business processes that cut across functions within firm and across partner firm, then it is reasonable to think that management of supply chain business process as part of the Business Process Management (BPM) implementation. The first step in BPM is evaluation of current condition which can be done through process mining. This paper attempts to investigate the viability of implementing process mining to model supply chain process through real case study. The case company addressed in this paper is an international manufacturing company that use SAP ERP in conducting their business processes. First a face-to-face interview with representatives from the company are conducted to understand the overall business processes. This is followed by defining and collecting the data necessary to conduct process mining. Based on the interview and initial data collection, two main challenges in implementing the process mining in the case company are identified: breakdown in business processes and information availability. Result from the case company highlights two disconnects in the business processes i.e. between source and make and between make and deliver that makes it difficult to capture and analyze the overall order fulfilment process of the case company. Finally, disconnect between physical flow of materials with the information flow is another main challenge in implementing process mining in a supply chain that has not implement RFID.

Keywords: Process Mining, Business Process Management, SAP, ERP, Supply Chain, Case Study.

INFORMATION SYSTEM CHALLENGES IN MANAGING ASSET INTEGRITY OF PETROLEUM PRODUCTION FACILITIES

Mayang Kusumawardhani University of Stavanger, Stavanger, Norway E-mail: [email protected]

Tore Markeset University of Stavanger, Stavanger, Norway E-mail: [email protected]

ABSTRACT The development of information systems in the petroleum industry is not without challenges. Besides the race with both development of technology and competitors, petroleum companies also face the high cost of implementing new technologies and maintaining their integrity. Additionally, the annual capital spending for the petroleum industry has more than tripled in the past decade, imposing the need for shareholders to find new ways to reassure their investments. This study is based on a literature study and interviews with industry experts. It aims to identify information system challenges in maintaining the asset integrity of petroleum production facilities and how industrial service could provide solutions to the problem. The role of information systems in petroleum asset integrity will be discussed, with smart technology as the key topic.

Keywords: Information technology, information system, industrial services, operation management, asset integrity, asset management.

MOBILE-APPS DEVELOPMENT FOR BIODIESEL DISTRIBUTION TRACKING SYSTEM AND SUPPLY CHAIN MONITORING

M. Iman Santoso Department of Transport-System & Logistic, Duisburg-Essen University, 47058 Duisburg Germany, E-mail: [email protected]

Bernd Noche Department of Transport-System & Logistic, Duisburg-Essen University, 47058 Duisburg Germany, E-mail: [email protected]

ABSTRACT Biodiesel is considered as the most prominent alternative to replacing or complement petroleum-diesel in the future. It is slowly gaining its importance in our daily life. Nevertheless, there are several problems emerged in the biodiesel supply chain, e.g. biodegradability, quality control, disturbance in the distribution of biodiesel, interrupted feedstock, supply and lack of governance. A new approach of biodiesel supply chain management has been developed based on mobile-application to overcome such problems. Determining the fact that biodiesel is degradable over time, the system also possessed by feature to maintain the biodiesel quality during transport, besides bringing-out simple and user-friendly supply-trading application on hand to hand. A wide range of biodiesel supply chain monitoring, distribution tracking and quality checking are demonstrated during the process of ordering, stocking, buying and sending biodiesel. The mobile-application has been tested for performance analysis on processor, battery and data usage. All menus, performance test and survey show good responses although at the security aspect is found the necessity of extra-development. Further analysis indicates that such system also fit for feedstock plantation, cultivation, harvesting and procurement. Overall, this method is worthy suggested to be implemented on the accreditation board of biodiesel that manages the entire supply, orders, trades and quality of biodiesel from upstream to the downstream.

Keywords: Biodiesel, Supply Chain, Mobile-Application, Distribution, Tracking.

RASPBERRY PI AND SENSOR NETWORKING FOR AFRICAN HEALTH SUPPLY CHAINS

Anna-Mara Schön Faculty of Business Administration, Campus Frankfurt House ofLogistics and Mobility, University of Applied Sciences Fulda, Germany, E-mail: [email protected]

LilianeStreit-Juotsa Faculty of Business Administration, Campus Frankfurt House ofLogistics and Mobility, University of Applied Sciences Fulda, Germany, E-mail: [email protected]

Prof. Dr. Dorit Schumann-Bölsche Faculty of Business Administration, University of Applied Sciences Fulda, Germany, E-mail: [email protected]

ABSTRACT Many medicines in Sub-Saharan Africa lose their effectiveness along the supply chain. Some of the reasons are poor information flows, lack of temperature control systems as well as missing standardized processes including the measurement through performance indicators.Studies from the World Health Organization – executedin 70 countries – report that only 29% of these countries meet the minimum recommended standards for temperature control and levels.In order to meet these challenges, efficient and effective ways need to be found. Frequent power outages, low level of education of personnel and a high rate of warehouses without any IT-infrastructure need to be taken into account. This paper focuses on the usage of Raspberry Pis and Arduino (small, simple and low priced computers) in combination with sensor networking. An in-depth literature analysis as well as an on- location inspection in Cameroon helped to detect the challenges African health supply chain manager face. The study of the possibilities of a Raspberry Pi in combination with Arduino and sensor networking is currently conducted in order to see if these hardware components could help to improve the cold chain challenges of high priced medicines (e.g. vaccines) in developing countries, e.g. in Sub-Saharan Africa. The objective of our research is to identify a fast and low cost temperature control system (estimated overall costs of the whole system max. US$ 350) in warehouses in developing countries (especially in Sub-Saharan Africa) and health supply chains, and which is at the same time easy to implement, to use and to maintain as well as working effectively (e.g. fast and reliable).

Keywords: sensor networking, health supply chain, Africa,cold chain, raspberry pi, single- board computer.

REINVENTING THE USE OF VEHICLE TELEMATICS DATA: USING MULTIVARIATE ADAPTIVE REGRESSION SPLINES MODEL FOR PREDICTING THE CONTAINER TERMINAL’S SERVICE RATE

Meditya Wasesa Rotterdam School of Management, Erasmus University, Burg. Oudlaan 50, 3062 PA Rotterdam, the Netherlands, E-mail: [email protected]

Andries Stam Almende BV Westerstraat 50, 3016 DJ Rotterdam, the Netherlands, E-mail: [email protected]

Eric van Heck Rotterdam School of Management, Erasmus University, Burg. Oudlaan 50, 3062 PA Rotterdam, the Netherlands, E-mail: [email protected]

ABSTRACT We seek ways to reduce the required time to finalize the containers pick-up/ delivery operation at the seaports area. Specifically, we investigate how trucking companies can utilize their GPS data asset, which is sourced from their subordinate trucks’ telematics system, for predicting the seaports’ service rate performance. We analyzed more than 15 million trucks’ mobility trace that are logged from more than 200 trucks and constructed multivariate adaptive regression splines models which perform better prediction than the performance of the ordinary linear predictive model. In this paper, we demonstrate how companies can gain valuable insights for making more intelligent operational decisions by re-evaluating their unutilized operational data using predictive analytics techniques.

Keywords: vehicle telematics data, gps data, multivariate adaptive regression spline model, predictive analytics, drayage trucks operation.

DEVELOPING INVENTORY MANAGEMENT IN HOSPITAL

Duangpun Kritchanchai Department of Industrial Engineering, Faculty of Engineering, Mahidol University, Nakornpathom, Thailand, E-mail: [email protected]

Watcharaphong Meesamut Healthcare Supply Chain Excellence Centre (LogHealth) Mahidol University, Nakornpathom, Thailand, E-mail: [email protected]

ABSTRACT Single inventory policy has been applied to entire types of drugs in hospitals despite several different drug and demand characters. Shortage regularly occurs; this may affect patients’ lives, especially when they are being administered vital drugs. However, hospitals cannot store a large amount of all drugs because of limited space and budget. The objective of this study is to develop a hospital inventory management system to minimise total inventory costs while maintaining patient safety levels. This study concerns only the medicines which have a high consumption value in a large public hospital in Thailand. The most suitable policy is proposed for each drug category with the best performance obtained. The historical demand is classified by drug characters, consumption value and clinical importance, and also demand characters. We apply and compare with the current inventory policy (Min/Max) and inventory policies from previous studies in order to investigate the most suitable inventory policy for each drug category and demand characters. The study found that a single inventory management system could not be effectively applied for all medicines. This is because there are also categories of medicines characterised by their value and clinical importance. This is called ABC/VEN classification. The inventory management in hospital should fit to drug categories and demand characters which are quite unique in healthcare supply chain and different from general manufacturing.

Keywords: inventory management, hospital, drug, clinical importance.

INTEGRATION OF REAL-TIME DEMAND INFORMATION AND SPARE PARTS DISTRIBUTION PLANNINGFOR THE OPTIMIZATION OF SPARE PARTS SUPPLY IN AFTER-SALES SERVICE NETWORKS

Martin Thormann Graduate School of Logistics, Faculty of Mechanical Engineering, TU Dortmund University, 44227 Dortmund Germany, E-mail: [email protected]

ABSTRACT Accurate spare parts demand planning and effective distribution planning is essential for providers of after-sales services in the machine and plant engineering industry to ensure high spare parts availability for maintenance and failure orders (callouts) at a reasonable cost. Low spare parts availability is primarily the result of high uncertainty in spare parts demand, leading to misallocation of parts within after-sales service networks. The lack of spare parts availability causes equipment downtime, resulting in customer dissatisfaction and possible penalty costs for after-sales service providers, if response times are contractually fixed. This paper proposes an approach and planning methods for integrating real-time status information about equipment utilization and service conditions to determine optimal spare parts stocking strategies. For this purpose, spare parts stocking strategies and ordering policies for application in after-sales service networks areanalyzed. Furthermore, abinary linear optimization modelis developed for the assignment of stocking strategies to spare parts based on real-time demand information of the equipment to be serviced. This method uses data provided by an internationallyoperating elevator company.

Keywords: After-Sales Service, Demand Planning, Distribution Planning, Elevator Industry, Inventory Management, Spare Parts Management

INVENTORY MODEL FOR FOOD PRODUCTS CONSIDERING PRESERVATION COST TO REDUCE QUALITY LOSS

Gusti Fauza School of Engineering, University of South Australia, Dept. of Food Science and Technology, Sebelas Maret University, Surakarta, Indonesia E-mail: [email protected]

Yousef Amer School of Engineering, University of South Australia,

Sang-Heon Lee School of Engineering, University of South Australia,

Hari Prasetyo Pusat Studi Logistik dan Optimisasi Industri, Teknik Industri, Universitas Muhammadiyah Surakarta, Indonesia

ABSTRACT Research on inventory models for deteriorating items has been extensively done. A great majority of these studies assume that the quantity of inventory is depleted by demand and deterioration which is applicable for certain items like alcohol, gasoline or radio-active materials. For food products, however, during a certain period of time the quantity is depleted only by demand while the quality is degraded over time. This paper proposes an inventory model for food products accommodating this situation. A kinetic modelling function is utilized to describe the quality loss during storage time. In addition, as food is a dynamic item where its quality degradation rate is influenced by storage conditions, particularly the temperature, controlling this parameter with additional cost could reduce the rate of quality loss. Therefore, by determining the ordering cycle and temperature of food storage, this research aims to minimize the total relevant costs e.g. ordering cost, carrying cost, quality loss cost and preservation cost. Also, this paper investigates the relationship between cost, temperature and quality loss. A mathematical model representing the inventory system is established and a numerical example is presented to demonstrate the benefit of the model compared to the existing models in literature.

Keywords: quality loss, food inventory, preservation cost.

INCREASING THE WAREHOUSE PRODUCTIVITY THROUGHPROCESS IMPROVEMENT

Alan Tay Chee Wee BSc (Logistics and Supply Chain Management) Student, School of Business SIM University, Singapore 599490, E-mail: [email protected]

Banna G Rao Associate Faculty, School of Business, SIM University Singapore 599490, E-mail: [email protected]

Tan Yan Weng Head of the Programme (Logistics and Supply Chain Management), School of Business SIM University, Singapore 599490, E-mail: [email protected]

ABSTRACT The Europe based automotive supplier had setup Asia Part Centre (APC) in Singapore with the objective to reduce the delivery lead time for its customer in the region. Currently, the productivity index in the APC’s warehouse is at 7 order lines per man-hr against the customer’s performance expectation of 8 order-lines per man-hr. Hence, the research was conducted to examine the current process in handling the order fulfilment in the actual warehouse environment and identify the areas for improvement. The challenge is to increase the productivity level of the order fulfillment without increasing manpower in the warehouse. Lean approach to process improvement is adopted to address this challenge. Outbound activities involving the shelving picking, pallet picking and packing are process mapped. Then Value Stream Mapping is applied onto the process maps for identifying the non-value added activities and improvements by process re-engineering. For the multiple location pallet pick process, picking list details are amended by an IT change request to allow printing of all bin locations for the part and eliminated the back and forth movement by the staff for checking in the inventory management system. Layout changes are proposed to reduce waiting and motion times during the picking process. The above improvements, such as reduction of non-value activities and process reengineering resulted in a major improvement of 48% in the outbound process time by reducing from 393.92 minutes to 206.72 minutes. Plus the availability of the additional location information on the pick list and reduction of motion time waste by layout improvement lead to a total 57% increase of the productivity.

Keywords: Warehouse, Productivity, Lean, Process map, Outbound activities.

THE BULLWHIP EFFECT IN RETAIL SUPPLY CHAINS: AN ANALYSIS OF STOCK ORDERING POLICY AND ICT LOGISTICS SYSTEMS

Surahman Surahman College of Business, Victoria University, Melbourne, Politeknik Negeri Samarinda, Indonesia PO Box 14428, Vic-8001, Melbourne E-mail: [email protected]

Himanshu K. Shee College of Business, Victoria University, City Flinders Campus PO Box 14428, Vic-8001, Melbourne, Tel:+613-9919 4077, E-mail: [email protected]

ABSTRACT This study examines the bullwhip effect (BWE), a well-known symptom of coordination problems in a supply chain. It has the potential to affect operational performance leading to increased operational cost and declining profit. It was found a significant positive relationship between demand management and the BWE via purchasing policy in stock ordering and ICT logistics systems. SEM with variance analysis was employed to analyze cross-sectional survey data from suppliers, wholesale DCs and convenience stores in both TNCs and LSCs in Indonesia. The results confirmed the presence of demand variability yet exists in both type of chains. Thus demand variability significantly influences inventory stock policy and ICT logistics systems leading to a significant predictor of the bullwhip effect. The paper concludes with implications and limitation of the study.

Keywords: bullwhip effect, retail supply chain, stock ordering policy, ICT logistics systems.

PRODUCT-SERVICE MODULE MIX OPTIMIZATION FOR PRODUCT-SERVICE SYSTEM WITH MULTI SEGMENT

Rosita Meitha Surjani Department of Industrial Engineering, University of Surabaya Doctoral Student Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Dina Natalia Prayogo Department of Industrial Engineering, University of Surabaya, Surabaya 60293 Indonesia, E-mail: [email protected]

Udisubakti Ciptomulyono Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Maria Anityasari Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Product-Service System (PSS) is a business model that combines tangible physical products and services in a system to leverage competitiveness, satisfy customer needs, and produce lower environmental impact than that produced by traditional business model. In order to achieve sustainability through PSS, a systematic approach for sustainable PSS is highly required, particularly for PSS with multi-segment targetting. Previous studies showed that PSS providers often face difficulty in managing product-service variety and manufacturing complexity altogether. This paper aims to study optimal selection of module mix for PSS with multi-segment. The module mix consists of physical product modules and service modules offered to the multi-segment. The Fuzzy Multi-objective programming is applied to obtain the optimal decision of PSS capability in fulfilling multi-segment customer needs with consideration of constraints of PSS provider resources and budget. The PSS capability in this research comprises the total performance, total expected profit and the percentage of satisfied demand. Sensitivity analysis is conducted by considering market segment percentage and maximum budget of each segment. Furthermore, a numerical example on PSS that offers various types of printer and related services is demonstrated to validate the model. The benefit of this research is to help PSS business model in managing product- service variety and maximizing PSS capability in serving multi-segment.

Keywords: product-service system, module mix optimization, fuzzy multi-objective programming. A PRODUCT AND SERVICE DESIGN METHOD

George C. Hadjinicola University of Cyprus, University Avenue 1 CY 2109, Aglantzia, Cyprus, E-mail : [email protected]

Christakis Charalambous University of Cyprus, University Avenue 1 CY 2109, Aglantzia, Cyprus, E-mail : [email protected]

Andreas C. Soteriou University of Cyprus, University Avenue 1 CY 2109, Aglantzia, Cyprus, E-mail: [email protected]

ABSTRACT In this paper we build on the existing work on product positioning and service development, and present a new method for service positioning that considers both tangible and intangible attributes. The new service positioning method is based on the product positioning method developed by Hadjinicola, Charalambous, and Muller (2013). The method uses the neural network methodology of a self-organizing map and incorporates the concept of rings of influence, where a firm evaluates individual consumers and decides on the intensity to pursue a consumer, based on the probability that this consumer will purchase a competing product. The method has several advantages over earlier work. First, no limitations are imposed on the number of competing products and second, the method can position multiple products in multiple market segments. We present a number of examples of applying the method, which is computationally efficient.

Keywords: Service and Product Positioning, Self-Organizing Map, Neural Networks.

ANALYSING NEW PRODUCT DEVELOPMENT PROCESS IN COMPANY X USING LEAN PRODUCT DEVELOPMENT APPROACH

Resa Christa Nugraha Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Dewanti Anggrahini Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail:[email protected]

Putu Dana Karningsih Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Competitions between companies are really demanding. Every company try to maintain their business. Manufacturing based company should produce a product and sell it in order to stay in business. Producing things would not happen if there is no product design. Designing a product is not an easy task, enormous efforts are needed to achieve the detailed design which ready to produce and launch to the market. This research is conducted in the aircraft manufacturer in Indonesia (Company X). Company X have a problem in their product development process. Their projects do not meet with planned schedule. Early identification shows that Company X has ineffective or inefficient product development process which lead to the project lateness. The possible cause of this problem is because there are a lot of wastes in the development process. In order to solve this problem, Lean Product Development is used. Some wastes are defined in this research such as strategy wastes, organizational wastes, and operational wastes. Reduce waste in the product development process would reduce the time in development process. Which lead the Company X’s product development could meet with the planned schedule. All of the questions will be validated by both of practical expert and academics judgement. So that this assessment tools fit not only for scientifics, but also for practical needs.

Keywords: aircraft manufacturing, lean assessment, lean product development, product design, waste.

CLAIMS, COMPLAINTS AND INNOVATION AS ALTERNATIVE PRODUCT ATTRIBUTES IN QFD-KANO’S MODEL CATEGORIZATION

Mokh Suef Department of Industrial Engineering - Institut Teknologi Sepuluh Nopember Surabaya, Indonesia, E-mail: [email protected]

Suparno Department of Industrial Engineering - Institut Teknologi Sepuluh Nopember Surabaya, Indonesia, E-mail: [email protected]

Moses L. Singgih Department of Industrial Engineering - Institut Teknologi Sepuluh Nopember Surabaya, Indonesia, E-mail: [email protected]

Ronald Sukwadi Department of Industrial Engineering, Atma Jaya Jakarta Catholic University, Indonesia E-mail: [email protected]

Eny Widawati Department of Industrial Engineering, Atma Jaya Jakarta Catholic University, Indonesia E-mail: [email protected]

ABSTRACT QFD-Kano is a very useful tool to ensure that a manufactured product would be designed in accordance with customer needs and would provide high satisfaction. Unfortunately, the approach depends highly on the external data rather than the internal one. As the QFD-Kano input, data of the customer needs have to be obtained from a customer survey which is time consuming and difficult to get an accurate result. It is necessary to develop an internal source of customer need data. Complaints, claims, and innovations data have been proposed as alternative data sources. Those data are already existed internally in the company. However, papers explaining the internal customer need data sources were very limited. This paper reports an empirical study taken from a company to confirm that category of the complaints, claims, and innovations are equivalent to the Kano’s product attributes. The results showed that complaints, claims, and innovations can be used as an alternative categorization of a product attribute in QFD-Kano model even though in low reliability. Considering the low reliability, second survey using professional customer respondents was also conducted. It resulted that the response supported the equivalence and increased the reliability.

Keywords: QFD-Kano, Complaints, Claims, Innovation, Customer Survey.

PROBLEM PREVENTION METHOD FOR PRODUCT DESIGNS BASED ON PREDICTIVE TECHNICAL EVALUATION: A STUDY OF BOLT-LOOSENING MECHANISMS IN AUTOMOBILES

Ryota Nomura Graduate School of Science and Engineering, Aoyama Gakuin University, Kanagawa 252-5258 Japan, E-mail: [email protected]

Kakuro Amasaka School of Science and Engineering, Aoyama Gakuin University, Kanagawa 252-5258 Japan, E-mail: [email protected]

ABSTRACT This research investigates the mechanisms that cause bolt loosening, which is a concern for automobile manufacturers. Specifically, experimental analysis is conducted in order to ascertain stress distribution patterns when bolts loosen under vibration testing conditions. The insights gained from this analysis are then used to reproduce actual machine tests in a simulator based on a technical element model for highly accurate CAE analysis. Looking at pressure distribution on the nut seating surface (the trigger for thread loosening), the authors were able to clearly and rationally clarify the degree to which this pressure distribution impacted the contact points between nut and bolt threads. The results can contribute to the formulation of problem prevention methods for product design based on a predictive technical evaluation process that does not rely on actual machine testing.

Keywords: CAE, bolt-loosening, thread portions of nuts and bolts

CREATING A VEHICLE PROPORTION, FORM, AND COLOR MATCHING MODEL

Shuntaro Toyoda Graduate School of Science and Engineering, Aoyama Gakuin University, Kanagawa 252-5258 Japan, E-mail: [email protected]

Kakuro Amasaka School of Science and Engineering, Aoyama Gakuin University, Kanagawa 252-5258 Japan, E-mail: [email protected]

ABSTRACT Increasingly diverse consumer values have made exterior vehicle design the most important factor influencing purchasing decisions in recent years. For this reason, identifying customers’ unspoken senses (values and trends) and scientifically presenting them from an objective standpoint has become an absolute requirement in automotive design. This process involves successfully matching vehicle proportion, form, and color from the perspective of an objective Customer Science approach.This paper outlines the development of a Vehicle Proportion, Form, and Color Matching Approach Method based on the customers’ senses.

Keywords: vehicle, Proportion, Form, Color, Matching Approach Model.

THE DEVELOPMENT OF USABILITY MEASUREMENT MODEL CONSIDERING COGNITIVE AND AFFECTIVE ASPECTS AND CULTURAL DIMENSION AS MODERATION: A RESEARCH FRAMEWORK

Heru Prastawa Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Department of Industrial Engineering, Diponegoro University Surabaya 60111 Indonesia, E-mail: [email protected]

Udisubakti Ciptomulyono Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Moses L Singgih Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Markus Hartono Department of Industrial Engineering, University of Surabaya Surabaya 60111 Indonesia, E-mail: [email protected]

In a highly competitive market, product design has shifted from production-oriented approach to marketing-oriented approach, and ultimately to the customer-oriented approach. The study of the needs, desires and preferences of the users becomes of highly important, so that developing products based on user experience is an important policy to the company, including the measurement of usability of products. Many studies have examined the themes of and usability as a good customer response to the product's predecessor. One of considerations in the product functionality is cognitive aspect in order to accommodate human cognitive capabilities, limitations, and tendencies. Moreover, empirical evidence showed that affective aspects correlated with the usability of a product is being considered by many researchers. In addition the affective aspects of the product should be integrated in the study of human factors. Both cognitive and affective aspects are important to the product design and process. Eventually, it will create more complete human-product interaction and experience. However, in the global market, product usability will vary across cultures. The influence of cultural dimensions within the scope of the usability and quality research has been done by several researchers. It showed that the Hofsted’s cultural dimension approach can be adopted. This paper tries to generate the applicability of the Hofsted’s culture dimension in sub cultures. A case study has been conducted in Indonesia that has many sub cultures. There would be six sub cultures indexed using Hofsted’s indexes.

Keywords: cognitive, affective, cultural dimension, usability measurement.

IMPROVING THE QUALITY OF SMARTFREN MOBILE BROADBAND SERVICE BY USING QFD (QUALITY FUNCTION DEPLOYMENT)

Yanuar Tri Sulistyo Telkom Economic and Business School, Telkom University, Bandung 40111 Indonesia, E-mail : [email protected]

Siska Noviaristanti Telkom Economic and Business School, Telkom University, Bandung 40111 Indonesia, E-mail : [email protected]

ABSTRACT Nowadays, people have changed their lifestyle that urges an internet as their basic needs. Number of internet users in Indonesia is grown up higher per year. That increasing number also happens toward of mobile internet users. Many telecommunication companies provide mobile internet service. One of them is a Smartfren Mobile Broadband. The Smartfren Mobile Broadband is a provider using CDMA (Code Division Multiple Access) technology. Therefore, this research implements a QFD (Quality Function Deployment) method that belongs to Heizer and Render. The tool of QFD is House of Quality. The House of Quality is a graphicc technique for defining the relationship between customer desires and product (or service). Only by defining this relationship in a certain way can operates managers design products and processes with feature desired by customers.There are two important parts of HoQ. They are customer wants and how the goods/service will satisfy customer wants. The customer wants are identified by using the quality of mobile broadband internet service owned by Tao. After that, it is analyzed by factor analysis. How the goods/service will satisfy customer wants is depend on interview with Smartfren Company side.From the research, there are three factors that customer want from Smartfren Mobile Broadband. They are emphaty, data service, and responsiveness. The most important factor for customer is empathy. Meanwhile, how the goods/service will satisfy customer wants has reached the number of Smartfren gallery in Indonesia, customer service’s SOP, excellent service tools, CDMA technology, number of BTS network, Smartfren Mobile Broadband bandwidth, responding to customer complaint, coordinating between Smartfren divisions. Smartfren Mobile Broadband also can compete to Flexi Mobile Broadband and has some competitive advantage. The result of HoQ reveals that Smartfren should to increase and expand the number of gallery throughout Indonesia and improve customer service’s SOP in gallery.

Keywords: Mobile Broadband, Quality Function Deployment, House of Quality, Factor Analysis

PROCESS RE-ENGINEERING OF INFLIGHT SERVICE CART DOOR ASSEMBLY

Banna Govardhana Rao Senior Lecturer, School of Engineering, Republic Polytechnic Singapore 738964, E-mail: [email protected]

Alan Lim Teik Cheng Head, PhD Programme, School of Science and Technology, SIM University Singapore 599491, E-mail: [email protected]

K Rama Bhupal Reddy Lecturer, School of Engineering, Republic Polytechnic Singapore 738964, E-mail: [email protected]

ABSTRACT The aviation industries are facing increased demand with buoyant growth in this sector. In addition to the growth, non-availability of skilled manpower and high cost of manufacturing forcing companies to explore the processes to be lean and agile in increasing the productivity. A study was conducted to improve the productivity in a company which manufactures inflight service carts by adopting lean manufacturing and mass customization methods. The process and layout analysis of existing door assembly area were carried out. Re-engineered the process and redesigned the layout into an assembly cell with flexible quick turnaround tooling to enhance the capability of the assembly process and improve the productivity. The actual implementation was done, and throughput was improved by 27%.

Keywords: Mass customization, Lean manufacturing, Productivity, Assembly cell.

THE POTENTIAL FOR BIO-ETHANOL PRODUCTION IN THE KWA-ZULU NATAL PROVINCE, SOUTH AFRICA

Tatenda Chingono University of Johannesburg, Department of Quality and Operations Management, APB, Johannesburg, South Africa. Email: [email protected]

Charles Mbohwa .University of Johannesburg, Department of Quality and Operations Management, APB, Johannesburg, South Afrira. Email: [email protected]

Anup Pradhan University of Johannesburg,Department of Quality and Operations Management,APB, Johannesburg, South Afrira. Email: [email protected]

ABSTRACT South Africa has much more to offer when considering the capacity to produce biofuels and also to grow total plant biomass and not only the production of crops suggested by the Biofuels Industrial Strategy. The sugarcane grown in South Africa has the potential of producing up to 549 million litres of ethanol. The worldwide use of large quantities of bioethanol will lead to a cleaner environment and to more secure and stable economies as the government will have better control of their energy needs. In South Africa, the government is facing a problem of increased unemployment in a time when many economies in the world are undergoing recession. However, the combined potential of producing food products as well as bioethanol without any disruptions to normal farming operations has the capacity to create additional jobs plus the production of up to 1.15 billion litres of bio ethanol.

Keywords: bio-fuels, bio-ethanol, sugarcane, clean environment.

MANAGING RISK IN SUPPLY NETWORKS: A CONCEPTUAL INVESTIGATION

Yash Daultani Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

Prashant Barsing Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

Omkarprasad S Vaidya Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

Sushil Kumar Operations Management Group, Indian Institute of Management, Lucknow 226013 India, E-mail: [email protected]

ABSTRACT Today's competitive, fast-moving business environment has irrevocably forced many firms to treat their traditional linear ‘supply chain’, as a complex cross-linked ‘supply network’. The network approach to supply chain management means that firms must find a way to protect their supply network by improving material and information flow, while simultaneously mitigating the risks arising due to the ever increasing business uncertainties. In this paper, we investigate the challenges associated with risk mitigation from a supply network perspective. These risks fall in three broad categories: (1) internal to a firm; (2) external to a firm, but internal to its supply network; and (3) external to a firm’s supply network. A 3-tier supply network is then considered with the representative stakeholders as manufacturers, retailers, and consumers. At each tier, stakeholders are expected to compete rationally to achieve the Nash equilibrium state. Traditionally, this problem is solved by using a top-down or bottom-up optimization approach, while the stakeholders deal in a linear supply chain. However, if the stakeholders are dealing in a complex cross-linked supply network, an end-to-end risk management approach is required. Towards the end, we propose a novel framework for managing risks in supply networks, while aiming the user, as well as system optimization.

Keywords: Supply network, Risk management, Supply chain risk management (SCRM), System optimization.

MANAGING RISK IN SUPPLY CHAIN: A FRAMEWORK FOR SUPPLY CHAIN RISK MITIGATION DECISION-MAKING

Anggriani Profita Department of Industrial Engineering, Mulawarman University, Samarinda 75119 Indonesia, E-mail: [email protected]

Iwan Vanany Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Nurhadi Siswanto Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Ineffective supply chain risks management is the disadvantage for the organization, such as financial, performance, physical, psychological, social, and/or time losses. Therefore, planning and evaluation processof risk mitigation strategies are substantial stages in supply chain risk management. This paper proposes a framework as decision support instrument for determining mitigation strategies. This instrument will enable the decision maker to examine the dynamic behaviour of risk, as well to test some alternatives of mitigation strategies and their trade off. The proposed framework integrates twoapproaches: Failure Mode, Effect, and Criticality Analysis (FMECA) and system dynamic simulation. The framework consists of four main steps, namely risk identification, risk analysis and evaluation, development of simulation model, and selection of risk mitigation alternatives. The applicability of frameworkhas been tested using single case study in cement company.

Keywords: supply chain risk, mitigatiton strategy, FMECA, system dynamics simulation

MANAGING RISK IN SUPPLY CHAIN: A FRAMEWORK FOR SUPPLY CHAIN RISK MITIGATION DECISION-MAKING

Anggriani Profita Department of Industrial Engineering, Mulawarman University, Samarinda 75119 Indonesia, E-mail: [email protected]

Iwan Vanany Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Nurhadi Siswanto Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Keywords: supply chain risk, mitigatiton strategy, FMECA, system dynamics simulation

MODELLING AND MANAGING SUPPLY CHAIN RISKS: A CASE STUDY IN AN INDONESIAN MANUFACTURING COMPANY

Putu Dana Karningsih Department of Industrial Engineering, SepuluhNopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected] Wiwin Widiasih Department of Industrial Engineering, SepuluhNopember Institute of Technology, Surabaya 60111 Indonesia Ibnu Hisyam Department of Industrial Engineering, SepuluhNopember Institute of Technology, Surabaya 60111 Indonesia Bustanul Arifin Department of Business Management, SepuluhNopember Institute of Technology, Surabaya 60111 Indonesia

ABSTRACT Managing risks for every company is a necessity as every business opportunity might be followed by certainrisk. Overlooked risks could lead to financial losses or even closing down of businesses. Rapid changing of business environment nowadays makes companies who are in the same supply network becoming greatly interdependent. Thus, to manage risk appropriately, a company should not only consider their internal operations but also take inter-organizational relations with their supply chain partners into account. Any risk that happens in one of a supply chain member could create adverse consequences to the whole network. In order to formulateproper mitigation strategy to minimize or eliminate SC risk, all potential risks and their interdependencies should be identified thoroughly. Complexity of today business environment makes identification of SC risk very challenging for company’s top management. This research proposes application of two approaches to systematically identify and map SC risks and their interdependency using Interpretive Structural Modelingand causal effectanalysis.To ensure that proper risk mitigation is formulated, Analytical Network Process is utilized to determine relative importance of SC risks and their interrelationships. This proposed model is applied to assist Risk Management Department of a large manufacturing company in Indonesia who just begins to consider SC risk as a part of their enterprise risk. 54 potential SC risks are identified and their interdependencies are then mapped. SC risk is measuredby modifying basic risk priority number calculation which takes into account the likelihood and weightage of any interrelated risk. As a result, there are five SC risks that are taken into highest priority to mitigate, they are: late delivery spare part to customer, incorrect calculation of product price, late delivery product to customer, late Purchase Orderrelease and late incoming material arrival.

Keywords: supply chain risk, interpretive structural modeling, analytical network process

THE SUPPLY CHAIN UNCERTAINTY AND RISK MEASUREMENT DEVELOPMENT

Michael Wang School of Business IT and Logistics, RMIT University, Melbourne, Victoria 3001 Australia, E-mail:[email protected]

Ferry Jie School of Business IT and Logistics, RMIT University, Melbourne, Victoria 3001Australia, E-mail:[email protected]

Ahmad Abareshi School of Business IT and Logistics, RMIT University, Melbourne, Victoria 3001Australia, E-mail:[email protected]

Abstract Due to the globalization, increased supply chain network complexity, higher customer expectations, shorter product and technology life cycles, and unstable environment, today’s supply chain now face more uncertainties and risks than ever. Supply chain uncertainties and risks already became major obstacles in achieving on time delivery, increasing customer satisfaction, improving the efficiency and reducing costs. Therefore, managing supply chain uncertainty and risk has become a priority issue in supply chain. Uncertainties and risks are interchangeable and inseparable. The study theoretically proposes four major categories of supply chain uncertainty and risk: (1) logistics uncertainty and risk, (2) information uncertainty and risk, (3) customer-related uncertainty and risk, and (4) environmental uncertainty and risk, in logistics and transport service industries. The purpose of this paper is to provide a reliable and appropriate measurement tool to assess the supply chain uncertainties and risks in logistics and transport industries. In developing the research instrument different sources were used including an intensive literature review on supply chain uncertainty and risk and interviews with both supply chain and logistics academics and managers from world leading logistics companies. Using the instrument enables the firms to identify and assess the various supply chain uncertainties and risks holistically in logistics and transport industries. This would also result in the development of a practical guidance for supply chain uncertainty and risk management in the industries.

Keywords: Supply chain uncertainty and risk, Risk management, Risk assessment, Supply chain management and logistics.

100

A STUDY ON KNOWLEDGE-RICH CRITICAL ELEMENTS WITHIN SRI LANKAN MANUFACTURING SUPPLY NETWORKS

L.D.C.S. Layangani Department of Transport and Logistics Management, Faculty of Engineering, University of Moratuwa, Sri Lanka, E-mail: [email protected]

Lee E J Styger MBA Director, Sydney Business School, University of Wollongong, Australia, E-mail: [email protected]

Amal S. Kumarage Senior Professor, Department of Transport and Logistics Management, Faculty of Engineering, University of Moratuwa, Sri Lanka, E-mail: [email protected]

ABSTRACT A supply network is the combination of elements that starts with the procurement of raw materials from a supplier or a group of suppliers, and ends by delivering the finished product to the end consumer. Some of these elements can be called Knowledge-rich critical elements; because of the amount of knowledge presented and level of competency that a given element contains within the network. The core objective of Supply Network Management is to increase the market share and the performance of its supply network members while increasing the operational efficiency and profitability of the company. Failures should not occur within the network, because the smooth operation of a supply network is important. Therefore, identification of the traits of individual supply network elements is essential to reduce these potential failures. This research identifies the Knowledge-rich critical elements within supply networks of Sri Lankan manufacturing companies that will assist better decision making, concerning choices of supply network configuration and management. The methodology supports the decision makers with implementing risk mitigation plans to maintain a competitive advantage within their supply network.

Keywords: Supply networks; Knowledge-rich critical elements; Risk profiles; Decision making strategy.

101

RELATIONSHIP BETWEEN KNOWLEDGE MANAGEMENT PROCESS CAPABILITIES AND SUPPLY CHAIN RELATIONS QUALITY

Ahmad Jafarnejad Faculty of Management, University of Tehran, Tehran 14155-6311 Iran, Email: [email protected]

Gama Harta Nugraha Nur Rahayu Business Management Program of STIMIK ESQ, Jakarta 12560 Indonesia, Email: [email protected]

Rohollah Ghasemi Faculty of Management, University of Tehran, Tehran 14155-6311 Iran, Email: [email protected]

Farzad Bahrami Faculty of Management, University of Tehran, Tehran 14155-6311 Iran, Email: [email protected]

ABSTRACT It believes that firms must extract maximum value from the knowledge they possess, acquire or create in order to compete and survive. In other hand, developing close relationship between suppliers and customers are well encouraged in the literature because relationships in supply chain have shown inspiring changes. Considering dimensions of Knowledge Management Process Capabilities (KMPC) and Supply Chain Relationship Quality (SCRQ) to present a conceptual model for KMPC and SCRQ is targeted in this paper. So, the effective factors of KMPC and SCRQ are well identified by 289 questionnaires, distributed among SAIPA’s suppliers. Factor analysis and structural equation modeling (SEM) are used to discover the relation between KMPC and SCRQ. Based on our results, “Knowledge conversion” and “Knowledge protection” are fairly most important dimensions of KMPC. Also based on our results, in the SCRQ, “Adaptation”, “Cooperation” and “Trust” are fairly most important dimensions. Finally, the results demonstrate a significant and positive relationship between them in the supply chain of SAIPA Company.

Keywords: knowledge management process capabilities, supply chain relationship quality, structural equation modelling, SAIPA Company.

102

A FRAMEWORK FOR MANAGEMENT OF AIRCRAFT ENGINEERING KNOWLEDGE

Rafed Zawawi School of Systems, Management & Leadership, Faculty of Engineering & IT University of Technology, Sydney, NSW 2007, Australia E-mail: [email protected]

Hasan Akpolat School of Systems, Management & Leadership, Faculty of Engineering & IT University of Technology, Sydney, NSW 2007, Australia E-mail: [email protected]

ABSTRACTS This paper presents the summary of results of a study that was undertaken to create an operations-based knowledge management (OBKM) framework in aircraft engineering field. It provides an insight into the framework development and validation processes, and concludes with the provision of some guidelines for an effective implementation of the framework. The study consisting of several evolution stages involved analysis of knowledge management (KM) literature in aircraft engineering field which led to the creation of a theoretical framework. Focus group workshops carried out with experts from Saudi Arabian aviation industry helped identify critical success factors (CSF) of an effective KM system and validate the theoretical framework. The coding and analysis of focus groups findings also resulted in the creation of a practice-based OBKM framework. The study also employed an aviation industry wide survey to validate the practice-based framework and provide some guidelines for an effective implementation.

Keywords: Knowledge Management, Operations Management, Aircraft Engineering, Critical Success Factors, Operations-Based Knowledge Management.

103

BIG DATA ANALYTICS IN SUPPLY CHAIN MANAGEMENT: TRENDS AND RELATED RESEARCH

Ivan Varela Rozados Supply Chain Research Centre, School of Management, Cranfield University Cranfield, Bedford MK43 0AL, UK

Benny Tjahjono Supply Chain Research Centre, School of Management, Cranfield University Cranfield, Bedford MK43 0AL, UK, E-mail: [email protected]

ABSTRACT Big Data Analytics offers vast prospects in today’s business transformation. Whilst big data have remarkably captured the attentions of both practitioners and researchers especially in the financial services and marketing sectors, there is a myriad of premises that big data analytics can play even more crucial roles in Supply Chain Management (SCM). This paper therefore intends to explore these premises. The investigation ranges from the fundamentals of big data analytics, its taxonomy and the level of maturity of big data analytics solutions in each of them, to implementation issues and best practices. Finally, some examples of advanced analytics applications will also be presented as a way of unveiling some of the relatively unexplored territories in big data analytics research.

Keywords: Analytics, Big Data, Business Transformation, Data Science, Predictive Analytics, Supply Chain Management.

104

FACTORS AFFECTING THE USE OF FIRST LEVEL OF HOSPITAL INFORMATION TECHNOLOGY IN SURABAYA

Amak Mohamad Yaqoub Department of Management, Faculty of Economics and Business, Universitas Airlangga, Surabaya, E-mail: [email protected]

ABSTRACT Healthcare provider in Indonesia has recent obligation to use information technology in accordance to new National Health Assurance system. Assurance claim payment is based on actual medical treatment reported by hospital staff using specified and relatively new information system. Since the success or failure of new technology implementation significantly affected by individual factor, mitigation in this area is important. This research aims to understand the factors that affect healthcare practitioner's behavior towards the use of information technology. Using UTAUT framework, five hypotheses were developed and tested to 98 respondents from 7 hospitals in the City of Surabaya. Data then processed and analyzed using PLS software. One hypothesis was rejected, ignited a discussion on the last section of this paper.

Keywords: hospital information technology, utaut, technology acceptance, national health assurance.

105

AN INTEGRATED MODELING OF HUMAN, MACHINE, AND ENVIRONMENTAL ASPECTS IN SUPPLY CHAIN PLANNING AND OPERATIONS USING FUZZY LOGIC

Parama Kartika Dewa Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, `Surabaya 60111 Indonesia, E-mail: [email protected]

I Nyoman Pujawan Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Iwan Vanany Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Supply chain planning and operations is deeply dependent on human endeavor. The performance of a supply chain is determined by the human that is involved in the process of planning and operation. Supply chain planning involves activities such as demand forecasting, developing various plans that includes production plan, procurement plan, and distribution plan. Supply chain operations are essentially executing such supply chain processes such as procurement, production, transportation, and warehousing. In all of the above processes, the roles of human are critical, although the specific roles played from one process to another are different. Human performance problems identified in real operational events often involve operators performing actions that are not required for accident response. Analyses of the major failure/accidents during recent decades have concluded that human errors on part of operators, designers or managers have played a major role. On the other hand, the effectiveness of human in planning as well as operations of a supply chain is affected by two other factors, namely the tools used and the working environment. In this paper we present a simulation modeling that establish a linkage between human, tools, and working environments in supply chain planning and operations to eliminate or reduce human error. The analysis of these relations is complex, involving vagueness and uncertainty data. Fuzzy Logics (FL) provides a mathematical framework for the systematic treatment of vagueness and imprecision data. This paper presents a simulation modeling using fuzzy logics in reducing human error.

Keywords: supply chain, human error, simulation, fuzzy logics.

106

HUMAN ERROR BEFORE AND AFTER THE IMPLEMENTATION OF MECHANIZED SORTING SYSTEM IN A DISTRIBUTION CENTER

Martha Caro Department of Industrial Engineering, Pontificia Universidad Javeriana Bogotá,Colombia, E-mail: [email protected]

Tatiana Segura Department of Industrial Engineering, Pontificia Universidad Javeriana Bogotá, Colombia

Leonardo Quintana Department of Industrial Engineering, Pontificia Universidad Javeriana Bogotá,Colombia,

ABSTRACT This research presents a new perspective for the human error and cognitive ergonomics analysis in the supply chain management as related to methods which have been traditionally studied in high risk operations such as nuclear plants, transportation, air and traffic control, refineries and health organizations. Several tools were applied systematically to collect, analyze and process the information in a distribution center of dry foods and from two conditions, called here the before and after mechanization conditions. This study pointed out and analyzed errors considering the cognitive factor of operators, the working methods, the incidence and classification of the human error and their effect on the performance of the supply chain, based on the service levels. As a result, the number of human errors after mechanization increased due to changes in required processes, because the cognitive elements in the tasks changed as a consequence of the new interactions of human to work and information systems. The service level was affected negatively, especially in the management indicator which decreased by 0,5% for the first three months with costs of around US$57.000.

Keywords: Human error, Cognitive ergonomics, Mechanization, Distribution Center, Supply Chain, Service level.

107

HUMAN FACTORS AFFECTING MATERIAL HANDLING IN A WAREHOUSE

Eko Nurmianto Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]; [email protected]; [email protected]

Udisubakti Ciptomulyono Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Suparno Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Sudiyono Kromodihardjo Department of Mechanical Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Manual Material Handling (MMH) is the main source of most of musculoskeletal accidents in the workplace, especially in the warehouse. This is due to the physical layout, containers, equipment,management of stocks and arriving merchandisein the warehouse. There is little literature on the human aspects of material handling. We espect this study will be able to fill the gap, safety problem and health in the company. The purpose of the study to determine the management decision criteria of ergonomic factors in the warehouse, identify how big the environmental factor (temperature, lighting, colour) affect MMH in a warehouse, and identify how important companies evaluate aspect of ergonomics in MMH. The model consist of aspects of human, material handling, analytical hierarchy process, experimental models, benefit-cost analysis, and warehouse environments. The results will describe the optimization of the safety and health aspects of work in the company.

Keywords: human factors, material handling, experimental methods, AHP, warehouse.

108

WORKFORCE SCHEDULING MODEL CONSIDERING ERGONOMIC FACTORS

Dyah Santhi Dewi Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Danang Setiawan Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Sri Gunani Partiwi Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Inappropriate workforce scheduling could negatively impact productivity, customer satisfaction and cost. Until recently, large number of research has been done to deal with this issue. Most of research focused on factors such as workforce availability, qualification, demand forecasting and cost, but limited on ergonomics-related-factors. This paper, therefore, aims to model the workforce scheduling problem which incorporating ergonomics factors including human factor, environmental limitation and job characteristics. By considering these three factors could potentially improve business operation performance as well as increase human well-being. This paper mainly focus on monotonous and repetitive job where worker stress, fatigue, boredom and occupational injuries increase due to the job characteristic and could impact worker performance. This research is conducted through three main stages, (1) identification of ergonomic factors, (2) mathematical modeling and (3) numerical testing. A mixed integer linear programming model is presented to determinejob rotation schedules which consider productivity as a objective function. The model will consider human factors (i.e.skill variability, productivity, workload and fatigue), environmental hazards (i.e. noise and temperature) and job characteristic (i.e. the risk of task). The result of numerical testing indicate that workforce scheduling that is consider ergonomics factor give better results in terms of worker well-being for and worker productivity. Workforce scheduling is one problem that have been faced by many operation managers.

Keywords: ergonomic, workforce scheduling, human factors, environmental hazard

109

CRUDE OIL SUPPLY CHAIN OPTIMIZATION AT PT PERTAMINA INDONESIA

Fikhi Adrian School of Business and Management, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

Togar M. Simatupang School of Business and Management, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

ABSTRACT This research aims to develop a simulation model for determine the best possible business solution to improve daily crude oil processing in PT Pertamina Refinery Unit V Balikpapan. In this study, the process of oil supply chain optimization is dependent on combination of planning and scheduling with goal to optimize the facilities that support refinery process and inventory management.Result of root cause analysis shows that long line queues of tankers in discharging units often causes low level of safety stock in storage tanks unit that impacted the amount of crude oil processing is not to maximum capacity. The possible solutions offered include proposing new model of jetty unit assignment for crude oil tankers berthing and unloading process, using selected queuing model in accordance with given duration of specified size and capacity of crude oil tanker based on their Estimated Time of Arrivals (ETA) and forecast using Monte Carlo simulation. The result of analysis identifies eight possible business solution scenarios. These scenarios then simulated using Monte Carlo simulation to assess the optimal operational performance for the company. Simulation results shows the best possible scenario with the new assignment of jetty units and tankers proper schedule of arrivals, optimum amount of crude oil income, and high level of safety stock also optimum desired amount of daily oil production at 260 kilo barrel per day (bpd).

Keywords: Pertamina refinery unit v Balikpapan, supply chain optimization, refinery planning, refinery scheduling, queuing model, monte carlo simulation

110

A PROCESS-BASED MODEL FOR PRODUCT RETURNSSERVICES IN AN E-TAILING ENVIRONMENT

Kamrul Ahsan College of Business, Victoria University, Melbourne, Australia, Email: [email protected]

Shams Rahman School of Business IT and Logistics, College of Business, RMIT University, Melbourne, Australia, E-mail: [email protected]

ABSTRACT With the growth of e-commerce in recent time, management of returns is increasingly becoming one of the critical challenges for online retailers commonly known as e-tailers. Returns management literature has focused less attention on addressing the issues of customer service values. However, product returns to e-tailers require more logistics and customer effort and it is essential for organizations to consider returns positively and develop customer oriented returns management systems. With the aim of extending the returns management literature, our research objectives are to develop a conceptual return operations process model and identify critical determinants for product returns services. Through the critical case sampling method we identify 19 major e-tailers in Australia and analyze contents of their returns policies in terms of returns service processes. We develop a returns operations process model and identify critical determinants for efficient product returns. The findings of the study can act as a reference guide to senior executives of e- tailers developing strategies for competitive advantage through efficient product returns management viz. customer retention and asset management.

Keywords: Product returns, e-tailer, returns service, returns process, Australia

111

RELOCATION OF CAR MANUFACTURERS: WISE SOLUTION OR COSTLY SETBACK?

Marian Liviu Mocan Department of Management, Politehnica University from Timisoara, Timisoara 300191 Romania, E-mail: [email protected]

Attila Turi Department of Management, Politehnica University from Timisoara, Timisoara 300191 Romania, E-mail: [email protected]

Gilles Goncalves Department of Informatics and Automation, Univ Lille Nord de France, Lille 59000 France, E-mail: [email protected]

Sorin-Ioan Maistor Department of Management, Politehnica University from Timisoara, Timisoara 300191 Romania, E-mail: [email protected]

ABSTRACT The paper outlines the current concern of relocation in automotive industry in order to adapt to market conditions by shifting production towards emerging countries. Car manufacturers strive to reduce their operational costs to compensate weak sales in an attempt to overcome the slow market revival and remain globally competitive. The paper focuses on the Dacia- Renault low-cost car policy and uses the case research method to describe differences in consumer behaviour on the French, Romanian and Moroccan car markets. Relevant data and indicators for automotive industry from these 3 countries are analysed and compared by using linear interpolation providing an aggregate indicator with an overview on market dynamics and perspectives. Preliminary results show that drivers of relocation are mainly related to market opportunity, workforce costs and infrastructure. Macroeconomic indicators, acquiring needed skills by local workforce and a good management capacity seem to be more delicate issues. Moreover authorities from emerging countries provide fiscal advantages for car manufacturers willing to relocate their activity or build a new factory as they are a source of wellbeing for its population and economic growth for the country. The research conducts an analysis of advantages and disadvantages of relocation and provides recommendations to improve competitiveness and assure sustainable development of both car manufacturing companies and their supply chain.

Keywords: relocation, automotive industry, supply chain, competitiveness.

112

MAPPING THE SOURCES OF EXPORT COMPETITIVE ADVANTAGE IN WOOD FURNITURE VALUE CHAIN

Eko Liquiddanu, Department of Industrial Engineering, University of Sebelas Maret , Surakarta, Indonesia,E- mail: [email protected]

Senator Nur Bahagia Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia

Lucia Diawati, Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia

Tota Simatupang Department of Industrial Engineering, Bandung Institute of Technology, Bandung 40132 Indonesia

ABSTRACT In the last five years, Indonesia’s wood furniture industry has achieved a lower export growth performance than the world’s average export growth. One of the ways of enhancing export performance is by increasing the competitiveness of those wood furniture companies of low performance to be ones of high performance. This research combined Shafaei (2009)’s and Li et al. (2006)’s models as the basic model of competitiveness with a value chain approach. The model was supplemented by some sources of competitiveness from other researches on export competitiveness. Moreover, the paper used a benchmarking method to identify the differences in the sources of export competitiveness owned by the value chain of companies with high export performance in Jepara and the value chain of companies with low export performance in Klaten. Benchmarking method was applied to the value chains consisting of timber traders, sawmill services, small scale producers that produced half-finished furniture and exporting companies that produced finished products and exported shipment to their foreign customers. The scientific contribution of this paper is an identification of the sources of export competitiveness developed from the models of competitiveness with a value chain approach. Result of the research showed that there are some differences in the sources of export competitiveness between a value chain of companies with low export performance and that of high export performance. The differences are among others: utilization of raw materials, commitment of the whole companies in the value chain to service their customers, measures of preventing product defects and involving small scale producers, specialization of suppliers, role of export marketing personnel to deliver services to their foreign customers, corporate strategies in marketing and active participation in an association of similar companies.

Keywords: export performance, sources of export competitive advantage, benchmarking, value chain.

113

IMPROVEMENTS IN MOVEMENT OF EMPTY CONTAINERS THE CASE OF THE PORT OF GOTHENBURG

Violeta Roso Department of Technology Management and Economics, Chalmers University of Technology, 41296 Gothenburg, Sweden, E-mail: [email protected]

Nils Andersson Department of Technology Management and Economics, Chalmers University of Technology, 41296 Gothenburg, Sweden, E-mail: [email protected]

Joakim Widstrand Department of Technology Management and Economics, Chalmers University of Technology, 41296 Gothenburg, Sweden, E-mail: [email protected]

Kent Lumsden Department of Technology Management and Economics, Chalmers University of Technology, 41296 Gothenburg, Sweden, E-mail: [email protected]

ABSTRACT Capacity increase only at seaport facilities without improvements in seaports’ inland access is not enough for the entire container transport chain to function properly. With constantly growing container transports, efficiency of rail and flexibility of road are increasingly needed for inland access to/from the seaports, however not always sufficient. Therefore the purpose of this study is to compare movement of empty containers by barge and Longer and Heavier Vehicles (LHV) to the reference situation done by regular trucks, on the case of port of Gothenburg and one of its nearby depots; with regard to economy, environment, flexibility and time efficiency. Currently the transportation of containers between the container terminal in the port of Gothenburg and the container depot located 6,5 km at Risholmen is carried out by trucks of a maximum capacity of three TEUs. The data for the study were collected through interviews, observation and literature review. The literature in general claims that barge is a very cost efficient and low polluting mode of transportation but in which circumstances? The findings of the study are focusing on how the studied modes are performing with respect to suggested criteria and show LHV to be the most suitable mode of transport for given route. Not only that the proper choice of the mode has an economic effect, but it also has an environmental impact due to reduced fuel consumption and reduced congestion and emissions.

Keywords: barge, LHV, empty containers, depot, port of Gothenburg.

114

LEAN KNOWLEDGE TRANSFER - A CASE STUDIES ANALYSIS

Effi Latiffianti Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Adewole Akanni Gillette UK Ltd, 452 Basingstoke Road Reading RG1 5NY United Kingdom, E-mail: [email protected]

ABSTRACT For lower manufacturing cost and better access to the emerging market, multinational companies relocated or invested in new facilities where labor cost is low. In such cases, transferring companies globally includes different tasks such as the movement of equipment and system, personnel, and facilities. However, in most cases the most difficult part is the transfer knowledge. The lean production system consists of various combinations of structural features that are selected on a case-by-case basis. To examine which lean practices are usually transferred or can be transferred, three case studies were reviewed in this paper. The case studies reflect the application of the Japanese lean production and management system in several countries in Europe and the United States. Analysis on the cases showed that some of lean elements are transferable, or transferable with adaptation, while several are culturally dependent.

Keywords: knowledge transfer, lean knowledge, case study.

115

THE DYNAMIC SUPPLIER SELECTION PROBLEM (DSSP): REVIEW AND RESEARCH OPPORTUNITIES

Purnawan Adi Wicaksono Department of Industrial Engineering, Diponegoro University, Semarang, 50275 Indonesia, E-mail: [email protected], [email protected]

Nyoman Pujawan Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Erwin Widodo Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Recently, the supplier selection method is an effective ways to reduce costs because it can not only reduce purchasing cost directly, but also cut operating costs afterward. There are two types supplier selection problem in literature i.e. Traditional Supplier Selection Problem (TSSP) and Dynamic Supplier Selection Problem (DSSP). Many researchers and practitioners have dealt the TSSP. However, the DSSP considering multi-part, multi-source, multi period is little discusses in the past literature.Moreover,two distinct streams of research can be found in supplier selection optimization: a first stream assuming that demand is deterministic and a second stream assuming that demand is stochastic. Most works in supplier selection optimization rely on deterministic approaches that assume all models’ parameters are nominal and show no variability. In practice, however, it might be difficult to knowin advance several key parameters,suchasproduct demand. This parameter should be thus regarded as uncertain.In addition, most of the literature in the area of the supplier selection neglects the transportation cost, whilst it is estimated that more than 50% of the total logistic cost of a product can be allocated to transportation, therefore any consideration of the purchasing quantities should be considering the transportation cost. In this paper, the author will examine the literature regarding the DSSP model considering transportation cost and demand assumption for the identification of research gaps.

Keywords: DSSP, transportation cost, stochastic demand.

116

PURCHASING MANAGEMENT AND REDUCING THE USE OF EXPRESS DELIVERY IN OFFSHORE PETROLEUM LOGISTICS

Per Engelseth Department of Logistics, Molde University College, 6410 Molde, Norway, E-mail [email protected]

Mads Løkås, Lene Edvardsen, Marlene Carlsen and Linda Ingebrigtsen Department of Technology, Narvik University College, 8505 Narvik, Norway

ABSTRACT Petroleum logistics in Norway is associated with the upstream supplies of parts and people to oil producing installations off the coast. This includes both platforms and subsea installations and land-based facilities adjacent to the production facilities offshore. This has traditionally been an industry with exceptionally high profit margins. This picture is, however, changing. Due to alternative energy sources including environmentally friendly sources, fracking technology and stabilizing market demand, the typically high prices of oil and gas is threatened. In Norway high profit margins have traditionally entailed a great deal of waste in the purchasing and associated logistics of supplies to offshore-based oil and gas production. Through a single case study of purchasing of urgently needed goods at the Statoil offshore logistics division at the supply base serving the Snøhvit subsea natural gas production facility, features of existent purchasing processes are described and analyzed. Based on analysis modes of improving purchasing to develop the studied petroleum logistics processes are discussed to secure responsive and economically sound.

Keywords: Petroleum logistics, Purchasing, Lean, Value Stream Mapping.

117

PURCHASING SOCIAL RESPONSIBILITY ACTIVITIES IN MALAYSIA: LABOUR AND HEALTH & SAFETY

Loo Saw Khuan School of Business and Administration, Wawasan Open University, 54, 10050 Penang, Malaysia, E-mail: [email protected]

Ellisha Nasruddin Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, E-mail:[email protected]

Globalisation of companies has led to international purchasing trend with multiple suppliers worldwide. However there were many issues pertaining to labour and health & safety of Asian suppliers. The purchasing function or professionals (purchasing managers) have the most interfaces and influences to suppliers and they are capable to play the most important role in suppliers’ labour issues. This paper examines the experiences of purchasing managers with regards to purchasing social responsibility (PSR) activities in labour and health & safety. Due to lack of previous research in this region, this research was done in qualitative phenomenological approach. In-depth interviews were done for sixteen purchasing managers of electrical and electronics multinational companies located in Malaysia. The research found that purchasing social responsibility (PSR) activities in health & safety were given more priority than PSR activities in labour. PSR activities in labour were a new phenomenon in Malaysia. The most common PSR activity in Malaysia was supplier audits and then followed by supplier selection, supplier self assessment and supplier briefing. Purchasing managers experienced supplier labour violations on safety equipments, safety issues, emergency doors, worker dormitories, wages and working hours. However purchasing managers preferred to work with suppliers for improvement in labour issues rather than to terminate suppliers. The issues experienced by purchasing managers were suppliers reluctant to follow labour standards, workers preferred longer worker hours and material price increase caused by PSR activities.

Keywords: Purchasing social responsibility, activities, labour, health & safety, Malaysia and phenomenological interviews.

118

REARRANGING CRITERIA FOR SUPPLIER SELECTION : A STUDY ON A NEWLY ACQUIRED MANUFACTURING COMPANY

Yuliani Dwi Lestari School of Business and Management, Institut Teknologi Bandung, Indonesia E-mail: [email protected]

ABSTRACT Increasingly, supplier selection plays an important role for almost every manufacturer. Aside from its effect on company’s performance, selecting the right supplier can ensure the sustainability of manufacturing process in a long term. In this study, we explore the application of the fuzzy analytic hierarchy process (FAHP) as a decision support model to help new top management - as the party that acquire a manufacturing company in Indonesia, to understand the preferences of acquired manufacturer management (existing management) in selecting their core material suppliers. Further, we then illustrate how FAHP is applied to evaluate the relative importance of four types of criteria (i.e., strategic performance, organizational factors, environmental factors, and social factors) in which involving two groups of respondent namely new management and existing management team. Based on this analysis, both managements can understand their different views and configure an appropriate new set of criteria used to select the core material supplier. Finally, an optimal supplier selection decision can be made based on these new chosen criteria to ensure a fit/consensus between new and existing management team and to achieve the company’s target performance.

Keywords: fuzzy, analytic hierarchy process, supplier selection, manufacturing

119

SOURCING STRATEGY FOR MAINTENANCE SUPPORT SERVICES IN PETROLEUM PRODUCTION FACILITIES

Mayang Kusumawardhani University of Stavanger, Stavanger, Norway E-mail: [email protected]

Tore Markeset University of Stavanger, Stavanger, Norway E-mail: [email protected]

ABSTRACT The trend to outsource business activities has been trending in the last few decades. With the rapid growth of new service providers, while organizations have more options in selecting suitable supplier, they could also be overwhelmed with the available alternatives. Other challenges in supplier selection could develop due to risks and considerations following engagement of service providers, especially in petroleum industry that closely tied with high investment and risk. This report is literature based and aim to identify the needs for maintenance services and propose a sourcing strategy process. The discussion will focus on petroleum production facilities due to its high requirements in health, safety and environment (HSE) standard. The sourcing strategy is taking into considerations associated drivers and indicators related with maintenance in petroleum production facilities.

Keywords: sourcing strategy, outsourcing framework, supplier selection process, maintenance support service, petroleum production facility.

120

A PROPOSED CONCEPTUAL FRAMEWORK OF CONTACT CENTRE SERVICE EXCELLENCE BASED ON CONTENT ANALYSIS

Surya Dharamdass Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, E-mail: [email protected]

Yudi Fernando Graduate School of Business, Universiti Sains Malaysia, 11800 Penang, Malaysia, E-mail: [email protected]

ABSTRACT This paper aims to develop a proposed conceptual framework that can be used in studying the determinants of contact centre service excellence for the continuously growing contact centre business globally. As literature reviews are defined as a primarily qualitative synthesis, the literature body is followed by a content analysis on the basis of a specific pattern of analytic categories derived from a typical research process. A range of English- written published papers between 1993 and 2013 are reviewed to explore the proposed determinants of contact centre service excellence. This proposed framework can be used by researchers and practitioners to study, guide, frame and model empirical research into this area in the future, and can be used to compare different determinants of contact centre service excellence within different industries in different countries.The methodological discussions and subsequent findings provide practical guidance for contact center researchers to identify determinants and apply content analysis for synthesizing literature reviews. The primary observation from the content analysis on the field of service excellence shows that there is limited academic literature in relation to service excellence in the contact centre industry. The distillation of the proposed determinants of contact centre service excellence in essence suggest that there should be a high focus on the people – customer service agents (CSAs) hiring criteria, training and development, reward system, structure and the co-ordination process. The implication to future researchers is to focus on these determinants to better understand the impact on service excellence. For practitioners, the implication is to consider reviewing the enablers in the organization that are currently being focused on to achieve service excellence and consider adopting the proposed determinants based on the findings.

Keywords: Contact Centre Service Excellence, Customer Service Agents (CSA), Business Process Outsourcing (BPO), Call Centre Service Delivery Excellence.

121

RESEARCH DESIGN FOR INDUSTRIAL SERVICE STUDIES

Mayang Kusumawardhani University of Stavanger, 4036 Stavanger, Norway, E-mail: [email protected]

Tore Markeset University of Stavanger, 4036 Stavanger, Norway, E-mail: [email protected]

ABSTRACT This paper focuses on industrial service research performed in the petroleum industry. This industry is capital intensive and much of the technology needed is advanced, complex and integrated, as well as customized to suit individual needs. As a result, a large number of activities are traditionally bought from external companies such as equipment suppliers and various specialized service providers. Based on a literature study, this paper investigates and analyzes various research methods used to study industrial service phenomena and processes. The nature of industrial services and feasible research approach alternatives are discussed. The discussion focuses on the analysis of the research paradigm and the accompanying research techniques to assess research problems as well as the generation of findings and their validation. A comprehensive block diagram is developed to aid researchers in structuring research approaches suitable for various industrial service research types. Furthermore, various possible research instruments for industrial service research are also presented.

Keywords: Research design, research methodology, industrial services, mixed methods research, industrial service research.

122

A NEW FRAMEWORK OF VALUE CHAIN THINKING FOR BUSINESS DEVELOPMENT

Rizky Ginardy School of Business and Management, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

Togar M. Simatupang School of Business and Management, Bandung Institute of Technology, Bandung 40132 Indonesia, E-mail: [email protected]

ABSTRACT Competitiveness of a firm has long been defined by its capabilities to achieve cost or differentiation advantage. When firms have the same capabilities, value creation is imperative as a new source of competitive advantage. The common evolutionary path of competitive advantage relies on cycles of value creation, value delivery, and value capture. However, previous studies about value chain concept are scattered and propose different definitions and types of chains. This paper attempts to formulate generic definition of value chain thinking by proposing a new framework of value chain thinking based on appreciative inquiry and service-dominant logic. The new framework is resulted in four cells of value chain thinking, which can be used to map a firm value chain and improve its value chain process. These four cells are traditional value chain, innovation value chain, shared value chain, and design-driven innovation value chain. The empirical evidence for the four cells of value chain thinking is also provided by testing the framework to four firms that are known to have done value-adding or value-innovation in its business. The research method is qualitative with primary data collection through face-to-face interview with firm representative, direct observation, and other secondary sources such as website and newspaper article. The result is that each firm matched each cell of value chain thinking through value chain mapping, and could be diagnose and enhanced based on its respective value chain thinking cell.

Keywords: Value chain, value chain thinking, appreciative inquiry, service-dominant logic, value chain management.

123

SYSTEM DYNAMICS APPROACH FOR ECO-TOURISM DEVELOPMENT: AN INDONESIAN CASE IN MALANG REGENCY

Erwin Widodo Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Tri Achmadi Department of Marine Transportation System, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

Friska Hanna Tarida Department of Industrial Engineering, Sepuluh Nopember Institute of Technology, Surabaya 60111 Indonesia, E-mail: [email protected]

ABSTRACT Tourism is a promising potential in most tropical counties such as Indonesia. Real actions to exploit this industrial sector have been done by Indonesian government. However, there is always a room for improvement. Some issues such as industrial sectors’ alignment, sustainability and eco-friendliness are amongst the challenges aside of the commonly considered economical aspect in managing this industry. This research constructs a basic model based on system dynamic approach for eco-tourism. The object under discussion is Malang, a promising-regency in term of tourism potential which is situated in middle-south of East Java province. The selected industrial sector to support this improvement idea on tourism is agriculture since this sector is the most already-established sector in most areas in Indonesia, including Malang regency. The steps to take are: a) tourism, agriculture, and other cross-sector entities’ elicitation; b) Entities relationships and c) system behavior modeling under system dynamics approach. Further, this preliminary result will be used to undertake the continuation research in proposing eco-tourism policy for Malang regency. This work is under Local Government Innovation System (Sistem Inovasi Daerah, SIDa in Indonesian language) scheme. The main objective of this amelioration is to raise the collaboration amongst industrial sectors to innovate tourism as an important service industry in Indonesia. The implementation of current research results are expected to improve significantly tourism’s contribution to local government’s own-resource revenue of Malang regency.

Keywords: Eco-tourism, System Dynamics, Local Government Innovation System (SIDa).

124

SMEs COMPETITIVENESS ANALYSIS IN THE GLOBAL ENVIRONMENT USING AN INTEGRATED SWOT-PORTER’S FIVE FORCES MODEL: A CASE STUDY OF AUSTRALIAN MANUFACTURING SMEs

Mohammad Rizal Firmansyah The School of Engineering, University of South Australia, Adelaide 5095, Australia, E-mail: [email protected]

Yousef Amer The School of Engineering, University of South Australia, Adelaide 5095, Australia, E-mail: [email protected]

ABSTRACT SMEs consist of around 90-99% of countries companies in the world. Their competitiveness is very important since they provide significant contribution to a country economy. SWOT and Porter’s five force models are both companies’ strategic position analysis tools which more often used to analyze SMEs competitiveness. SWOT model is used to evaluate the company internal and external condition while Porter’s five forces model stresses the company evaluation more on the external condition. Each model has their advantages as well as their drawbacks. There are no literatures found so far which discuss the combination use of SWOT and Porter’s five force model to analyze SMEs competitiveness. The authors try to integrate and combine both analysis models into a more comprehensive model by benefit each model advantages and overcome the drawbacks respectively. In addition, the analysis considers the trend of business competition changes of the current global business environment. In the end, a case study of Australian manufacturing SMEs in the global value chain network is conducted by using the integrated tool. The result shows that Australian SMEs both need financial support and information as well as a design of an appropriate model for their collaboration in the global value chain environment in order to be competitive in the global market.

Keywords: manufacturing SMEs, SWOT, Porter’s five force model, competitiveness.

125

LOCATION PROBLEM IN A SUPPLY CHAIN NETWORK WITH INBOUND AND OUTBOUND PRODUCT FLOWS

Suprayogi Research Group on Industrial System and Techno-Economics, Faculty of Industrial Technology, Institut Teknologi Bandung, Bandung, Indonesia E-mail: [email protected]

Senator Nur Bahagia Research Group on Industrial System and Techno-Economics, Faculty of Industrial Technology, Institut Teknologi Bandung, Bandung, Indonesia E-mail: [email protected]

Yudi Thaddeus Center of Logistics and Supply Chain Studies, Institut Teknologi Bandung, Bandung, Indonesia` E-mail: [email protected]

ABSTRACT This paper considers a location problem in a supply chain network consisting of regions, warehouses, distribution centers, plants, and markets. The products include a set of inbound products and a set of outbound products. The inbound product is the product demanded by regions and produced by plants. The inbound product flows on a sequence of plants, distribution centers, warehouses, and regions. The outbound product is the product demanded by markets and produced by region. The inbound product flows on a sequence of regions, warehouses, and markets. The problem deals with determining locations of the warehouses and the distribution centers to be opened and shipment quantities associated with all links on the network. A mixed integer linear programming (MILP) model is proposed. The MILP is solved using a commercial optimization solver.A hypothetical example is given to illustrate the problem and its solution.

Keywords: Location problem, Supply chain network, inbound product flow, outbound product flow, Mixed integer linear programming model.

126

GENETIC ALGORITHM FOR SOLVING A HELICOPTER ROUTING PROBLEM

Suprayogi Research Group on Industrial System and Techno-Economics, Faculty of Industrial Technology, Institut Teknologi Bandung, Bandung, Indonesia, E-mail: [email protected]

Andi Cakravastia Research Group on Industrial System and Techno-Economics, Faculty of Industrial Technology, Institut Teknologi Bandung, Bandung, Indonesia, E-mail: [email protected]

Aditya Pandu Wicaksono Study Program of Industrial Engineering, Faculty of Industrial Technology, Institut Teknologi Bandung, Bandung, Indonesia, E-mail:[email protected]

ABSTRACT This paper presents a helicopter routing problem (HRP) motivated from a realproblem of transporting personnel in an oil and gas exploration and production company. There is a set of location points consisting of a depot (base) location and a set of helipads located in both on-shore and off-shore locations. A set of flight requests is known in advance. Each request is booked in a system consisting of information such as origin and destination locations, number of passengers, and passenger and baggage weights. Both origin and destination locations can be either base or helipad locations. There a set of homogeneous helicopter stationed at the depot. Each helicopter is associated with seat and weight capacities.Given a planning horizon, the HRP deals with designing helicopter flight routes minimizing the total duration time and satisfying the helicopter capacity, maximum duration time, and precedence constraints. The HRP discussed in this paper is considered as the dial-a-ride problems (DARP). A genetic algorithm (GA) technique is proposed and implemented in application software. Hypothetical instances are used to test the proposed GA.

Keywords: Helicopter routing problem, Dial-a-ride problem, Genetic algorithm.

127

ECO-INDICATOR 99 PRACTICAL CONCEPTS OF MODELLING DAMAGE IMPACTS TO ENVIRONMENT - APPLICATION TO THE PREPARATION PROCESS OF HEXAGONAL MESOPOROUS SILICA MATERIAL

Junior Mabiza-ma-Mabiza Department of Quality and Operations Management, Faculty of Engineering and the built Environment, University of Johannesburg, Bunting Road Campus, Auckland Park, Johannesburg, South Africa, E-mail: [email protected]

Charles Mbohwa Department of Quality and Operations Management, Faculty of Engineering and the built Environment, University of Johannesburg, Bunting Road Campus, Auckland Park, Johannesburg, South Africa, E-mail: [email protected]

ABSTRACT Eco-indicator 99 methodology can be considered a valuable tool to determine environmental damage impacts of products. The method is a valuable tool for improving existing processes and developing new products in an environmentally sound fashion. The assessment can only be achieved after establishing the inventory analysis by which input-output materials and emissions are made known. The eco-indicator 99 methodology helps to identify the types of exposure and environmental damage of the used materials and processes. The method is built from practical concepts,adeveloped approach to overcome the difficulty that occurs in the weighting step of the ISO 14040 method. The eco-indicator 99 methodology considers the weighting step as the starting point in the assessment of environmental damage impacts. Exposure and effect analysis can be determined from damage analysis.A case of application was to analysea laboratory-based elaboration process of the Hexagonal Mesoporous Silica (HMS) material. HMS is of great interest in the area of catalysis, essentiallyin the high efficiency performance of the polymer electrolyte membrane fuel cells, owing it to its thicker framework wall and its response as a catalyst, showing performance by its thermal stability and wormhole framework structure. HMS is developed by nanotechnologyand chemicals use. Environmental damage impacts can be observed and suggested solutions suggested.

Keywords: Eco-indicator 99 methodology, Hexagonal Mesoporous Silica, Environmental Damage Impacts.

128

ECO-INDICATOR 99 THEORETICAL CONCEPTS OF MODELLING DAMAGE IMPACTS ON ENVIRONMENT - APPLICATION TO THE PREPARATION PROCESS OF HEXAGONAL MESOPOROUS SILICA-SUPPORTED PLATINUM NANOPHASE (HMS-PT) MATERIAL

ABSTRACT The method of Eco-indicator 99 can be well thought-out as a valued tool to determine environmental damage impacts of products. The method is a valuable tool for improving existing processes and developing new products in an environmentally sound way. The assessment can only be realised after establishing the inventory analysis by which input- output materials and emissions are made known. The eco-indicator 99 methodology helps to identify the types of exposure and environmental damage of the used materials and processes. The method is built from practical concepts, a developed approach to overcome the difficulty that occurs in the weighting step of the ISO 14040 method. The eco-indicator 99 methodology considers the weighting step as the starting point in the assessment of environmental damage impacts. Exposure and effect analysis can be determined from damage analysis. A case of application was to analyse a laboratory-based elaboration process of the Hexagonal Mesoporous Silica-supported Platinum Nanophase (HMS-Pt) Material. HMS-Pt is a structured of platinum metal deposited onto a HMS matrix to obtain Pt salt nanoparticles of HMS nanostructure essential to obtain a composite electrode highly efficientin performance. Such an electrode is suitableforSPE electrolyser and PEM fuel cell system. HMS-Pt is developed using nanotechnology with involvement chemicals. The environmental assessment showed likely damage impacts.

Keywords: Eco-indicator 99 methodology, Hexagonal Mesoporous Silica-supported Platinum Nanophase Material, Environmental Damage Impacts.

129

SYNTHESISING HEXAGONAL MESOPOROUS SILICA- SUPPORTED PLATINUM NANOPHASE (HMS-PT) MATERIAL PROTOTYPE AND TYPES OF EMISSIONS IN THE PREPARATION PROCESS

ABSTRACT The hexagonal mesoporous silica-supported platinum nanophase material is an important component in the development of the nanophase composite electrode material for high electro catalytic electrolytic activities of PEM Fuel Cell and SPE electrolyser. Much effort in terms of research has been undertaken to bring down to least possible the noble metals content in the membrane electrodes to reduce capital costs. This is possible by the use of nanotechnology in which chemicals are more or less involved. Chemicals are generally source of emissions. Findings revealed that there are likely direct and indirect emissions in the manufacture of HMS-Pt. Identified emissions and their environmental damage impacts resulting can be seen as environmental challenge in the route of the developing a clean technology and mainly when scaled up into industrial application. The improvement of the process by reducing emissions and human hazards of the chemicals should therefore be considered.

Keywords: Hexagonal Mesoporous Silica-Supported Platinum Nanophase, Platinum Nanophase Composite Electrode, Life Cycle Inventory Analysis, Emissions, Carbon Footprint.

130

EFFECTIVE WAYS ON HOW TO DEVELOP BEST PRACTICES FOR VISUALIZING SUPPLY CHAIN DASHBOARDS KPI’S

Johannes B. Mapokgole Department of Quality and Operations Management, University of Johannesburg, South Africa, E-mail: [email protected]

Charles Mbohwa Department of Quality and Operations Management, University of Johannesburg, South Africa, E-mail: [email protected]

ABSTRACT The benefits of Supply Chain Visibility (SCV) have been known for over a decade. Supply Chain Visibility can be accomplished through data visualization, referred to as supply chain dashboards in this paper. Organizations have been deploying Supply Chain Visibility solutions in their environment to reduce costs and improve services but often remain dissatisfied as the existing solutions fail to deliver in today’s highly dynamic business environment. As a result Supply Chain Visibility projects to support agile supply networks are at high risk for failure. Achieving Supply Change Visibility excellence has become a major concern for supply chain leaders. Some of the major challenges faced by supply chain companies among others are: (1) Collapsing demand, unreliable forecasts, (2) Increasing complexity of global sourcing and aggressive global competition leading to longer lead times and more pipeline inventory; and (3) The immediate need to control downstream and upstream logistics. To address the above-mentioned challenges organizations need a dynamic and robust SCV framework that can enable quick response to change as well as improve and strengthen the organizational supply chain by making data readily available at a glance to all stakeholders, including the customer. The need for Supply Chain Visibility framework is especially great for manufacturing companies who are moving from a push supply chain model to a demand-driven supply chain model. This paper presents a generic concept of developing a supply chain dashboard coupled with practical case studies. The concept is developed based on a methodology for mapping, modeling, analyzing and redesigning the value chains for extended enterprise, the control and monitoring model. The supply chain dashboard supports the monitoring, analysis, control and management of the supply chain performance. It supports decision making by visually displaying in true time leading and lagging indicators in a supply chain process perspective. The dashboard offers support for three areas: monitoring, analysis and management, and it contains three indicators; performance, diagnostic and control. The supply chain dashboard concept serves as basis for a supply chain studio that will allow rapid decision making based on real-time information at an aggregate level along the entire value chain. An old management adage that say “you cannot manage what you do not measure” and “to measure is to know”.

Keywords: KPI’s, Dashboard, Metrics, Supply Chain, System Thinking.

131

AMELIORATING CORPORATE PERFORMANCE: BY DESIGNING A RESILIENT SUPPLY CHAIN MEASURING SYSTEM

Johannes B. Mapokgole Department of Quality and Operations Management, University of Johannesburg, South Africa, E-mail: [email protected]

Charles Mbohwa Department of Quality and Operations Management, University of Johannesburg, South Africa, E-mail: [email protected]

ABSTRACT In today’s highly business competitive environment, most businesses have and continue realizing the value of investing in supply chain improvements. A good starting point of improvements can be associated with scientific analysis of their returns. For that reason, most businesses have also created metrics that document practical supply chain performance and keep track of changes overtime in order to drive their business performances and profitability. While performance measurement is critical, unfortunately most companies either measure too much or too little with regard to supply chain. Other shortcomings may include; too many metrics, isolated metrics, conflicting metrics, outdated metrics, unreliable data, lack of ownership among others. It becomes even worse when companies measure wrong things. On the other hand, companies continue to pursue supply chain metrics as a means to increase their line of sight (i.e. that which is visible to them) over areas they do not directly control but have an impact on their companies’ performance. Problems with current metrics and the need for supply chain performance measure are discussed. This paper is aimed at establishing universally effective measurement system for global supply chain. Proposed framework focuses on managing the interfacing customer and supplier relationship management processes at each link in the supply chain. A unified approach for measuring supply chain system is presented supported by real life case studies coupled with practical examples.

Keywords: Supply Chain Management, Performance Metris, Customer & Supplier Relationship Management.

132

EFFECTS OF TRAFFIC CONGESTION ON NATIONAL GROSS DOMESTIC PRODUCT (GDP) IN GAUTENG PROVINCE

Johannes B. Mapokgole Department of Quality and Operations Management, University of Johannesburg, South Africa, E-mail: [email protected]

Charles Mbohwa Department of Quality and Operations Management, University of Johannesburg, South Africa, E-mail: [email protected]

ABSTRACT Traffic congestion disrupts day-to-day business activities which ultimately have a negative impact on productivity levels. However, research has shown that it may also be a symbol of growth in an economy. As the economy grows, household income also increases; vehicle population surges up, contributing to traffic congestion, mainly within cities. Traffic congestion may be seen as a sign of a healthy economy. Given the importance of productivity on the Gross Domestic Product (GDP) growth, it is economically worthwhile to recognize the damaging effects of traffic congestion on productivity. This study aims to assess the extent to which congestion affects worker productivity. The study focuses on the transportation system in two major Gauteng Province (Johannesburg and Pretoria), South Africa. Gauteng was chosen for the research due to its strategic location as a transit point to the country (from flight point of view), which makes it prone to traffic congestion. The study adopted survey strategy on five major road links in the metropolis. Primary data is collected using developed questionnaires. Descriptive statistics is used to analyse the data with the aid of Statistical Package for Social Sciences (SPSS). The results from the analysis indicated that mobility in Gauteng Metropolis is restricted due to congestion, causing excessive travel delays, particularly, during peak hours and negatively affecting productivity. Therefore, expanding transport infrastructure as well as improvement in the traffic management and control system should be given attention to improve the transportation system in the metropolis. This would enhance worker productivity and ultimately increase national GDP.

Keywords: Transportation system, Traffic congestion, Worker productivity.

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IMPROVING POSTAL SERVICES IN LIMPOPO BY APPLYING BIO-MIMICRY

Tharelelo Mokgokong Department of Industrial Engineering Technology, University of Johannesburg C/O Kingsway and University road, Auckland park, Johannesburg, www.uj.ac.za Republic of South Africa, Email: [email protected]

ABSTRACT The postal services is one of the country’s largest governmental institutions whose role involves moving goods and services across the country, continent and the world, contributing to the country’s economic growth. A more eco-efficient supply chain system for will ensure that the country’s economy becomes more competitive in comparison to the developed world.The purpose of this paper is to use bio-mimicry principles to design an eco- efficient supply chain model. Eco-efficient in supply chain can mean: (1) Reduction in the use of fossil fuels to reduce pollution levels and money saving, (2) Reduction of energy used and money saving, (3) Lean process to reduce waste and money saving, (4) Reduced travelling distance. Sustainable business models are a prerequisite for organizations to ensure success in the future. Swarm intelligence models were used to optimize the supply chain model for the province of Limpopo. The principles were applied to the entire supply chain model until the system was optimized. 50% reduction in the number of trucks required was reduced and a reduction of 43% of the distance travelled.

Keywords: Postal services, Eco-efficiency, Bio-mimicry, Ant colony optimization, Swarm intelligence, Supply chain

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APPLYING BIO-MIMICRY IN COMMERCE AND INDUSTRY

ABSTRACT Eco-efficiency is the future of business. By developing an eco-efficient business solutions will ensure that any improvement made will be sustainable going forward also ensuring that organizations are ahead of the green curve. Sustainable business models are a prerequisite for organizations to ensure success in the future. The focus of this paper will be looking at how bio-mimicry can support in creating sustainable solutions for business. By applying bio mimicry, one can look at nature and develop a more eco-efficient business solution. In looking at nature, there are many potential solutions. The application of bio mimicry provides improvement opportunities any industry. When looking at how ants move between the food source and the nest, and how ants follow the route with a more concentrated levels of pheromones. The ants then find the shortest routes between the food source and the next. These principles are widely applied in the field of supply chain and logistics. Engineers can learn from nature to develop more efficient processes and better work organizations by just observing nature. Having systems that have the accuracy of nature’s systems, they can assist organizations to manage processes more efficiently, for example lessons on work organization can be learnt observing the way bees go about doing their daily chores, organizations can also learn from bees supervision, and scheduling of resource allocation and from the efficient manner that they go about executing their operations.

Keywords: Bio-mimicry; Eco-efficient; Ant colony optimization; Swarm intelligence; Route optimization; Supply chain.

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CLEANER PRODUCTION PERSPECTIVE IN LUBRICANTS BLENDING AND USAGE

Ignatio Madanhire Department of Quality and Operations Management,, University of Johannesburg,, Auckland Park 2006,, University of Johannesburg,, South Africa Department of Mechanical Engineering,, University of Zimbabwe,, Harare,, Zimbabwe,, E-mail: [email protected]

Charles Mbohwa University of Johannesburg,, Department of Quality and Operations Management,, Auckland Park 2006,, Johannesburg,, South Africa,, E-mail: [email protected]

ABSTRACT This paper is a study of Cleaner Production in the Petroleum Lubricants Industry value chain.. It highlights available opportunities to minimize negative environmental impacts of lubricants from blending to disposal.. Investigations were done on current cleaner production practices in the local industry.. Issues on base oil substitution,, minimizing oil losses during and after manufacturing,, raw material and energy consumption reduction,, and environmentally friendly used oil disposal were considered.. This work is a useful resource for managers in the lubricants industry for both blending plants and consumers,, to incorporate CP practices in their operations for regulatory compliance,, environmental protection and business competitiveness..

Keywords: lubricants,, cleaner production,, waste,, blending,, disposal..

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TOTAL QUALITY MANAGEMENT (TQM) TOOL IN IMPROVING COMPETITIVENESS

Charles Mbohwa University of Johannesburg,, Department of Quality and Operations Management,, Auckland Park 2006,, Johannesburg,, South Africa,, E-mail: [email protected]

ABSTRACT The success of TQM as a boost to business competitiveness has had its own share of controversies. Many organizations all over the world have embarked on the TQM journey, with their process under statistical control, to achieve increased competitiveness, some recorded success while others regretted ever embarking on such a journey. The purpose of this research study is to determine if the myth of TQM in enhancing business competitiveness is true for Zimbabwean manufacturing organizations.

Key words: quality, competitiveness, TQM, manufacturing

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RELIABILITY CENTRED MAINTENANCE (RCM) IN IMPROVING PLANT AVAILABILITY PERFORMANCE

Charles Mbohwa University of Johannesburg,, Department of Quality and Operations Management,, Auckland Park 2006,, Johannesburg,, South Africa,, E-mail: [email protected]

ABSTRACT This research study investigates implementable reliability improvement opportunities available in a sugar manufacturing plant that can produce an increase in availability performance. It recommends different maintenance policies for different equipment based on the operating context of the equipment. The Reliability Centred Maintenance (RCM) methodology is followed and results are compared to world class sugar manufacturing industry benchmarks. The study can be a useful resource to plant managers seeking to heighten plant availability.

Keywords: maintenance, reliability, availability-performance, maintainability, plant

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Author Index Berthiaume, Michel, 38 A Bölsche, Dorit Schumann, 79 Budipriyanto, Adi, 75 Abareshi, Ahmad, 100 Achmadi, Tri, 124 C Adetiloye, Taiwo O., 37 Adrian, Fikhi, 110 Cakravastia, Andi, 127 Agustina, Dwi, 66 Cakravastia,Andi, 16 Ahsan, Kamrul, 36, 111 Carlsen, Marlene, 117 Airola, Merja, 71, 74 Caro, Martha, 107 Akanni, Adewole, 115 Charalambous, Christakis, 87 Akpolat, Hasan, 103 Cheng, Alan Lim Teik, 94 Alhadi, Tariq K. Eltayeb Nour, 5 Chhetri, Prem, 21 Alves, Bruno de Sousa, 61 Chingono, Tatenda, 95 Amasaka, Kakuro, 69, 90, 91 Chingono, Tatenda T., 35 Amer, Yousef, 72, 83, 125 Chu, Chi-Leung, 51 Amer,Yousef, 13 Ciptomulyono, Udisubakti, 86, 92, 108 Amornpetchkul, Thunyarat (Bam), 57 Andersson, Nils, 114 D Andri, Kuntoro Boga, 25 Anggrahini, Dewanti, 88 Dan, Bin, 64 Angkiriwang, Reina, 59 Daud, Andre R, 30 Anityasari, Maria, 86 Daultani, Yash, 24, 96 Ardiansyah, Muhammad Nashir, 33, 65 Delelegne, Blen, 31 Ardiantono, Dewie Saktia, 27 Dewi, Dyah Santhi, 109 Arifin, Bustanul, 99 Dewi, Oki Anita Candra, 53 Astuti, Hanim Maria, 76 Dharamdass, Surya, 121 Diawati, Lucia, 113 B E Bachtiyar, Candra, 9 Bahagia, Senator Nur, 16, 45, 113, 126 Edvardsen, Lene, 117 Bahrami, Farzad, 102 Engelseth, Per, 31, 117 Baihaqi, Imam, 2, 19 Eunike, Agustina, 3 Baihaqi,Imam, 15 Baron, Opher, 68 Barsing, Prashant, 24, 96 F Basri, Mursyid H, 30 Fauza, Gusti, 83 Berman, Oded, 68 Fauza,Gusti, 13 139

Fernando, Yudi, 1, 4, 121 Jaswal, Farzeen, 42 Fernando,Yudi, 7 Jie, Ferry, 100 Firmansyah, Mohammad Rizal, 72, 125 Juotsa, Liliane Streit, 79 Fitrianto, Achmad Room, 8 Fries, Carlos Ernani, 61 K Fujita, Kazuki, 69 Kainuma, Yasutaka, 36 G Karningsih, Putu Dana, 88, 99 Kartika Dewa, Parama, 106 Gan, Shu San, 52 Khompatraporn, Charoenchai, 11 Gekara, Victor, 21 Khuan, Loo Saw, 118 Ghasemi, Rohollah, 102 Krass, Dmitry, 68 Ginardy, Rizky, 123 Kritchanchai, Duangpun, 81 Goncalves, Gilles, 28, 112 Kromodihardjo, Sudiyono, 108 Govindaraju, Rajesri, 16 Kumar, Sushil, 24, 96 Gunarta, I Ketut, 23 Kumarage, Amal S., 101 Gupta, Vaibhav, 34 Kurosawa, Tomotake, 63 Gurning, Saut, 75 Kusnandar, 50 Kusumawardhani, Mayang, 77, 120, 122 H L Hadjinicola, George C., 87 Handayati, Yuanita, 29 Latiffianti, Effi, 115 Hartati, Misra, 62 Layangani, L.D.C.S., 101 Hartono, Markus, 92 Lee, Eugene-Eu-Chun, 7 Hashimoto, Kai, 12 Lee, Sang-Heon, 13, 83 Hatta, Muhammad, 44 Lene, Edvardsen, 117 Heck, Eric van, 80 Lerdleuchachai,Krit, 11 Hemilä, Jukka, 71, 74 Lestari, Yuliani Dwi, 119 Hisyam, Ibnu, 99 Li, Vincent, 51, 67 Hopkins,John L., 17 Lin, Yicheng, 67 Hudaningsih, Nurul, 46 Liquiddanu, Eko, 113 Hussain, Kazi Anowar, 10 Liu, Molin, 54 Løkås, Mads, 117 I Lumsden, Kent, 114 Ijtihadie, Royyana Muslim, 25 M Ingebrigtsen, Linda, 117 Islam, Mohammad Khairul, 10 Mabiza-ma-Mabiza, Junior, 128 Madanhire, Ignatio, 136, 137, 138 J Mahendrawathi ER, 76 Maistor, Sorin-Ioan, 28, 112 Jafarnejad, Ahmad, 102 Manikas, Ioannis, 42 140

Mapokgole, Johannes B., 132, 133 Piplani, Rajesh, 66 Mardiyanto, Ronny, 25 Pradhan, Anup, 95 Markeset, Tore, 77, 120, 122 Prasetyani, Rini, 44 Maryani, Anny, 46 Prasetyo, Hari, 13, 83 Mbohwa, Charles, 35, 95, 128, 132, 133, Prastawa, Heru, 92 136, 137, 138 Prayogo, Dina Natalia, 86 McKay, Judy, 17 Profita, Anggriani, 97, 98 Meesamut, Watcharaphong, 81 Pujawan, I Nyoman, 59, 106 Mocan, Marian Liviu, 28, 112 Pujawan, Nyoman, 52, 75, 116 Mokgokong, Tharelelo, 134, 135 Purnomo, Dwi, 39, 49 Mondal,Manik, 10 Purnomo, Muhammad Ridwan Andi, 32 Mulyati, Erna, 19 Putamawa, Fiqihesa, 70 Muslimah, Meinar Dyan, 73 Putro, Utomo S, 30 Mutia, 40 Q N Quintana, Leonardo, 107 Narulidea, Winda, 58 Nasruddin, Ellisha, 118 R Noche, Bernd, 78 Noche,Bernd, 14 Rahayu, Gama Harta Nugraha Nur, 102 Nomura, Ryota, 90 Rahman, Arief, 46 Noor, Trisna Insan, 39, 49 Rahman, Shams, 111 Normasari, Nur Mayke Eka, 9 Rao, Banna G, 84 Noviaristanti, Siska, 93 Rao, Banna Govardhana, 94 Nugraha, Resa Christa, 88 Reddy, K Rama Bhupal, 94 Nurfatiasari, Safrani, 50 Renaldi, Eddy, 39, 49 Nurmianto, Eko, 108 Ridwan,Asep, 14 Nurminarsih, Siti, 48 Rimantho, Dino, 44 Nyamekye, Patricia, 47 Roso, Violeta, 114 Rozados, Ivan Varela, 104 O Rusdiansyah, Ahmad, 27, 48, 53, 58, 60 Rzeczycki, Andrzej, 6 Ohmori, Shunichi, 18, 56, 63 Ohmori,Shunichi, 12 S P Salminen, Antti, 47 Santosa, Budi, 59, 62, 70 Partiwi, Sri Gunani, 109 Santoso, M. Iman, 78 Perdana, Tomy, 29, 39, 49, 50 Saththasivam, Geevaneswary, 1 Perve, Gul, 37 Schön, Anna-Mara, 79 Phuah, Joey-Soo-Yee, 4 Segura, Tatiana, 107 Piili, Heidi, 47 Seibel, Silene, 41 141

Setiawan, Danang, 109 Turi, Attila, 28, 112 Shee, Himanshu K., 85 Shinkawa, Yohei, 18 U Silva, Glauco G. M. P. da, 41 Simatupang, Togar M., 26, 29, 73, 110, Uddin, Mohammed Forhad, 10 123 Simatupang, Tota, 113 Singgih, Moses L, 92 V Singgih, Moses L., 15, 89 Vaidya, Omkarprasad S, 24 Singgih, Moses Laksono, 23 Vaidya, Omkarprasad S., 96 Singh, Mukund Murari, 34 Vanany, Iwan, 25, 62, 97, 98, 106 Siswanto, Nurhadi, 2, 70, 97, 98 Vanhanen, Juha, 74 Sitompul, Carles, 40 Venkatesh,Parvathi, 20 Snell, Darryn, 21 Vilko, Jyri, 47 Somboonwiwat, Tuanjai, 11 Soteriou, Andreas C., 87 Stam, Andries, 80 W Styger, Lee E J, 101 Wahjudi,Didik, 15 Suef, Mokh, 89 Walters,Tim, 7 Suhandi, Victor, 55 Wan, Yat-Wah, 67 Sukma P, Virhanty Ernita, 60 Wang, Jianfu, 68 Sukoyo, 9 Wang, Michael, 100 Sukwadi, Ronald, 89 Wasesa, Meditya, 80 Sulistyo, Yanuar Tri, 93 Wedowati, Endang Retno, 23 Sumantri, Yeni, 3 Wee, Alan Tay Chee, 84 Suparno, 52, 89, 108 Weng, Tan Yan, 84 Suprayogi, 65, 126, 127 Wessiani, Naning A., 53 Surahman, Surahman, 85 Wibisono, Febrianus D., 45 Surjani, Rosita Meitha, 86 Wicaksono, Aditya Pandu, 127 Suwignjo, Patdono, 15 Wicaksono, Purnawan Adi, 116 Widawati, Eny, 89 T Widiasih, Wiwin, 99 Widodo, Basuki, 52 Tama, Ishardita Pambudi, 3 Widodo, Erwin, 116, 124 Tarida, Friska Hanna, 124 Widstrand, Joakim, 114 TD, Ika Sari Wahyuni-, 7 Widyarini, Maria, 26 Thaddeus, Yudi, 126 Wirjodirdjo, Budi Santoso, 19 Thormann, Martin, 82 Wirjodirdjo, Budisantoso, 75 Tjahjono, Benny, 104 Tombido, Locadia L., 2 Toyoda, Shuntaro, 91 Y Tubino, Dalvio Ferrari, 41 Yamada, Kazuki, 56 Tundys,Blanka, 6 Yaqoub, Amak Mohamad, 105 142

Yin, Xin, 64 Z Yoshimoto, Kazuho, 18, 56, 63 Yoshimoto,Kazuho, 12 Zawawi, Rafed, 103 Yu, Vincent F., 9 Zhang, Haiyue, 64 Yulianti, Femi, 16 Zhang, Xiuzhou, 54 Yuniarti, Rahmi, 3 Zhang, Xumei, 54

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THE APPLICATION OF GREEN SUPPLY CHAIN MANAGEMENT: CASE STUDY IN ELECTRONIC WASTE INFORMAL SECTORS IN SURABAYA CITY, EAST OF JAVA-INDONESIA

Dino Rimantho Industrial Engineering Department, Pancasila University, Jakarta Indonesia, Email: [email protected]

Rini Prasetyani Industrial Engineering Department, Pancasila University, Jakarta Indonesia, Email: [email protected]

Muhammad Hatta Industrial Engineering Department, Universitas 45 Surabaya, Indonesia, Email: [email protected]

Keywords: e-waste, informal sectors, green supply chain, sustainability, Surabaya

1. INTRODUCTION Discussions on the future of electronic waste to be one interesting issue, especially in recycling activities associated with sustainable development. Huisman et al., (2007) noted that electronic products have a very complex waste stream when it has not been used. The production of e-waste has been increased in line with the rapid growth in the use of electronics equipments (Andarani and Goto, 2013). The desire of consumers to the latest electronic manufactured goods caused by the development of technology, electronic products such as new functionality and attractive design. As a result, LaCoursiere (2005), noted that there was a significant increase in the sales of new electronic products in almost all countries in the world. Increased use of electronic products accelerates the electronics product life. According Widmer et al., (2005) draw attention to that the average age of electronic products has decreased each year. Electronics products that have passed the end of life can be interpreted as a secondary source because it contains some valuable materials such as gold, silver and platinum (Oguchi et al., 2011).

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The informal sector has a greater role in the recycling of electronic waste in developing countries. Numerous studies on the recycling of electronics products in the informal sector to obtain precious metals has been done in some developing countries such as China and India (Eugster and Fu, 2004; Streicher-Porte et al, 2005; Rochat et al, 2008). Research conducted by Sepúlveda et al, (2009) found several problems associated with electronic waste recycling activities. For example: the health risks of workers exposed to hazardous materials such as lead, arsenic and cadmium. In addition, recovery process inefficient in terms of resource conservation perspective because many valuable items were missing. Moreover, disposed of hazardous materials in illegal landfills that are likely to trigger a negative impact on the environment. Thus, it can be interpreted that the electronic waste recycling activities in the informal sector is not really a sustainable solution. Recycling activities aim to reduce and reuse waste that is considered to provide economic value and function. This can be interpreted as a basis concept of thought go green. Go green program can be done by the company by doing several application methods. Application of the method of supply chain is the main aim of this study. Green supply chain methods can be applied in several activities such as an integrated supply chain on green purchases since from suppliers, manufacturers, end users, and also to the reverse supply chain that form a "closed loop" (Zhu and Sarkis, 2006). Environmental issues and literature review of supply chain management (SCM) is a basic concept of green supply chain management. Thus the use of the term "green" in the SCM to integrate the relationship between SCM and sustainable environmental protection. Consequently, the researchers and companies pay more attention to the theory and practice of green supply chain lately. Most of the experts in terms of supply chain believe that the cause of environmental degradation is the result of a supply chain that does not pay attention to environmental issues (Beamon, 1999). For example, to protect the company from the unfavourable environmental impact on the supplier, then some multinational companies begin to enforce regulations and "green barriers" (Rao, 2006). Currently the business activity must be subject to regulation and supervision of the various parties within and outside the organization associated with environmental issues. Consequently, the challenges and pressures encourage companies to more seriously consider the environmental impact of the business process. Hervani, et al., (2005) describes that there are several objectives of green supply chain such as the reduction of negative environmental impacts and minimizing wastage of resources from production activities.

2. LITERATURE REVIEW A series of processes in which raw materials are transformed into a product and used by end consumers is the terminology of the traditional supply chain management (Beamon, 1999). Furthermore, Kumar and Chandrakar (2012), underlines that the process also includes the extraction and use of natural resources. To be able to face environmental issues, hence some environmental regulations are made and developed to enforce business organizations. For example, there is an emphasis on electronic waste and restriction of hazardous substances (RoHS) in the European Union recently. For example, one of activity which is considered to be successful in the promotion of reuse, recycling, reduction and minimize the use of hazardous materials from products in the market is to implement the 3R campaign intensively (Directive, 2012). Furthermore, Chen-Lung Yang and Chwen Sheu (2007) noted that the producers supply chain upstream and downstream experiencing tremendous force because of the enforcement of the WEEE and RoHS in order to work together on green management performs. Numerous categories of industries such as chemical, petrochemical, mining and semiconductor is one focus of the discussion of environmental performance. Increased environmental risks can be found in each company, particularly associated with the supply chain. The decision in this area is a

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fact that becomes increasingly important to be considerate. Thus, there are two trends that businesses should be achieved: competitive advantage through supply chain strategy and competitive advantage through the role of environmental performance. At level managers must consider several factors, especially considering the impact of decisions on the environment also it continue prioritizing the traditional performance dimensions of cost, quality, delivery and technology. A more proactive approach to strategic or a keyword for a company to be able to manage the supplier based on strict compliance to the rules. Several researchers have conducted a study on "ecological sustainability" as a framework for studying management practices. This is due to the increased interest in the application environment and business practices. For example, manufacturing practices (Klassen and McLaughlin, 1996), the design process (Porter and van der Linde, 1995), management practices (Sarkis and Rasheed, 1995), and product design (Sroufe et al, 2000). Supply chain management has been used in internal and external company to provide an explanation of the plan and control the flow of materials and information logistics activities (Fisher, 1997). Moreover, Beamon (1999) explains that the integrated manufacturing process is the definition of the traditional supply chain where the raw material is converted into the final product and shipped to consumers through distribution. Currently, one of the important agenda of the business is the application of the concept of green supply chain management. It is triggered by a change in some instances, such as environmental requirements affecting manufacturing operations and strategy of development of environmental management in the supply chain (Beamon, 1999). Considerations in the context of the environment can be reached with the innovation supply chain management and purchasing industry (Green et al., 1996). The integration of environmental ideas in supply chain management is the definition of green supply chain (Srivastava, 2007). It includes several factors such as product design, source of raw material and the selection, production process, distribution of final products to consumers and end-of-life management of the product after useful life. Furthermore, some researchers also define green supply chain management in a similar context. Furthermore, some researchers also define green supply chain management in a similar context. For example, consideration of innovation in supply chain management and purchasing in the context of the environment (Green et al, 1996), an increase in supervision and controlling practices and environmental performance in the supply chain (Godfrey, 1998). Rao (2002), asserts that in order to address the issues of environmental awareness from the perspective of the practitioner can use the green supply chain. Developed countries have adopted green policies and guidelines in order to improve the realization of sustainable production and consumption. To make the green supply chain, concrete reality with a significant impact on the institution, encouraging the majority of companies in developed countries take the same approach at the institutional level (Zsidisn & Siferd, 2001). Figure 1 below describes the model of green supply chain, which in a production process, there is some waste generated from each stage. The picture also provides information about the possibility to reduce the waste through several streets such reuse, recycling and remanufacturing. The decision in the supply chain of green manufacturing environment may include several factors such possibilities of the use of certain renewable materials in a process, the ability to use recyclable materials and minimizing waste. At the stage of the supply chain there is potential to make a breakthrough more environmentally friendly method which benefits from the application of the environmentally friendly process is a major concern of the internal organization (Sarkis, 2003).

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REVERSE LOGISTICS Energy Energy Energy Energy Reuse

Process Raw Virgin Fabrication Assembly Customer Remanufacture Design Material Material Product Design Recycle Waste Waste Waste Waste Waste Procurement Production Distribution Disposal

Reduce Figure 1. Functional model of an organizational supply chain with environmentally influential practices (Sarkis, 2003).

Some tools in the green supply chain that can reduce waste. For example, pre-qualification of suppliers, which requires the purchase stage environmentally friendly, performance of environmental management as a supply base, considering environmental factors in product design, in the context of end-of-pipe environmental issues consumers should be cooperation with suppliers, reverse logistics, supply chain policies can be better if there is legislation that became the facilitator, standardization standards together with industry peers, providing information on environmental issues to suppliers, promotional ideas and exchange information (Aravindhan et al., 2012).

3. METHODOLOGY Collecting data using quantitative method used in this paper. The rationale for the use of this method because there is an attempt to generalize the results to the general population. Respondents were selected to be involved in data collection methods to answer the questionnaire. Interviews and surveys conducted as a method of data collection. The informal sector of electronic waste in the city of Surabaya, East of Java-Indonesia is a population in this paper. According to Castillo (2009), states that in order provide assurance the statistical analysis of the sample must be of sufficient size. The population is a representative sample of the informal sector of electronic waste in Surabaya, East Java, Indonesia. There are two markets in Surabaya that famous as the place for E-waste informal sectors, such as Dupak and Gembong. Lwangga and Lemeshow (1991) describe that to estimate a population proportion with specific absolute precision will require a confidence level of 95%, an anticipated population proportion of 50% and absolute precision of 10 percentage points. Based on this, the table of estimating a population proportion with specific absolute precision requires a sample size of 43 informal sectors interviewed. In order to meet the objectives in this study, the questionnaire was adapted and validated from the e-waste management guide (UNEP, 2007). When compared with the method of observation, a questionnaire is more efficient to collect large amounts of data at a lower cost. Face-to-face interviews held with personnel in charge of E-waste management in Informal sectors in Surabaya city. The purpose of the questionnaire was to collect some information such as general information about the activities of the informal sector of waste electronics, involvement in the green supply chain scheme, willingness to contribute in the green supply chain activities and advices for green electronics waste informal sector.

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Data collected from the questionnaires will be processed, reviewed, and edited. Statistics Package for Social Sciences (SPSS) software was used to analyze the data. Descriptive statistics will be expressed as mean ± standard deviation for continuous variables and count (percentage) for categorical variables. In order to interpret the results obtained from the questionnaire study was used descriptive statistics and inferential statistics. Interpretation of the questionnaire is shown through statistical interpretation, graphs and frequency percentages.

4. RESULT AND DISCUSSION E-waste management in Indonesia does not have laws that specifically address the management issues. However, some inhabitants have to know the management of electronic waste and the informal sector has been doing e-waste management practices. To determine the presence of waste electronics supply chain network, a survey was conducted in the city of Surabaya. Gembong and Dupak region located in the city of Surabaya became the focus of the interview in the survey, especially e-waste dealers and some recycling of e-waste.

Company Brokers Main Export Dealers Overseas

Sub-dealer Service centers Recycler Goldsmith Household Scavengers

Collection centres

Figure 2. Supply chain for electronic waste in Surabaya

Based on Figure 2 provides an illustration of supply chain network of e-waste in Surabaya. The results of the survey found that there are four levels of waste electronics supply chain network, such as: the individual or the end user, scavengers and service centers, sub-dealers and dealers. In general, electronic procurement distinguished by the type of user, which the waste electronics from individuals collected by scavengers and service centers. The majority of household waste collectors come to browse and buy valuables and electronics broken or out-of- date. In addition, electronics products that cannot be repaired collected by the service center. Sub- dealers or agents that represent sub-dealers usually get waste electronics from companies that sell electronic equipment in large quantities such as computers, television, air conditioning. Sub dealers will reprocess and recycle electronic waste for material recovery. Last supply chain of electronics waste recycling processes is sub-dealers. The sub-dealers selling electronic waste that does not provide economic value to large dealers. Furthermore, in practice dealers obtain large amounts of electronic waste and recycling process of waste electronics that have been collected. This dealer accepts all electronic waste from all regions in Indonesia. The dealer usually provides the warehouse to collect electronics waste and subsequently sent to several countries in Asia such as China, Taiwan and Hong Kong.

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To determine the frequency of respondents, the calculation of the mean score and standard deviation analysis was conducted based on factors that promote green initiatives by the informal sector of waste electronics.

Table 1. Summary of Mean score and Standard deviation

Description Average mean Standard deviation Tendency score Supply chain willingness 3.71 0.879 High Consumer’s persuade 3.34 0.958 Moderate Government 3.26 0.829 Moderate Contribution Non Government 3.34 0.910 Moderate Organization’s persuade

Table 1 provides information on the participation of the company's green supply chain readiness with an average score of 3.68 which this factor can be interpreted that there is a fairly high tendency toward company participation. Furthermore, the consumers and non-governmental organizations persuade have a moderate tendency which the average score is approximately 3.34. Similarly, the involvement of the government that has an average score of nearby 3.3 which can be interpreted to have a moderate tendency to encourage participation in the informal sector of the green supply chain.

Table 2. The correlation between Supply Chain Readiness and Willingness to Contribute

Supply chain Willingness to readiness contribute Supply chain readiness Pearson 1 .891*** Correlation

Sig. (2-tailed) .000 N 43 43 Willingness to contribute Pearson .891*** 1 Correlation

Sig. (2-tailed) .000 N 43 43 **. Correlation is significant at the 0.01 level (2-tailed).

Based on calculations using SPSS are presented in table 2 above provides the information that the willingness of the informal sectors to contribute to the readiness of the green supply chain has a Pearson correlation value of approximately 0.891 and the significance level (2-tailed) from the table was 0.000. The null hypothesis was rejected and it can be interpreted that there is a significant correlation between the willingness of the informal sectors to contribute to the readiness of the green supply chain. The highest mean score value of willingness to implement green supply chain to illustrate that this is the most important factor in the e-waste informal sector to take the initiative to go green. There 525

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are numerous factors contained in the internal characteristics in order to determine the perceptions associated with green supply chain initiatives, for example, technical knowledge, information and resources. Internal resources and capabilities of an organization are the two terms of the readiness of companies that can prove to be a critical success suppliers to engage in green supply chain initiatives. A study by Teece and Pisano (1994), demonstrated the role of organizational capability on both organizational innovation and organizational performance. Furthermore, the study also provides information that organizations diverge in their internal source base and the system has the capability to take action to changes or internal and external challenges. Factors such as organizational resources, organizational innovation and organizational monitoring system is a pillar of the organization's ability to meet the challenges. The difference of each company in terms of capabilities and resources will generate in different points in terms of taking green initiatives. Specific resources and capabilities that can be found on the company's corporate performance measures can thus be applied to various types of companies (Lee, 2008).

Table 3. The correlation between Consumer’s persuade and Willingness to Participate

Consumer’s Willingness to persuade contribute Consumer’s persuade Pearson 1 .845*** Correlation

Sig. (2-tailed) .000 N 43 43 Willingness to contribute Pearson .845*** 1 Correlation

Sig. (2-tailed) .000 N 43 43 **. Correlation is significant at the 0.01 level (2-tailed).

Table 3 shows the relationship Costumer persuade and willingness to contribute in the Green Supply Chain Initiative. Correlation values of 0.845 and the second factor is the level of significance (2-tailed) is 0.000. The null hypothesis was rejected, thus it can be concluded that there is a significant relationship between the Customer and the willingness persuaded to participate in the Green Supply Chain Initiative. The consumer is one actor who is considered to have significant influence to encourage companies take green initiatives. In recent years, manufacturing firms have been conducted the intensification based on supplier's participation in providing direct input (Jabbour and Jabbour, 2009). Studies conducted Henriques and Sadorsky (1996) noted that there are two categories of groups that can encourage the successful implementation of supply chain. For example, external groups represented by the regulators, the public, customers, suppliers; Internal groups are represented by the shareholders, management and employees. In order for operational improvements in purchasing and supply chain organizations need to performed integration between buyer and supplier organizations (Vachon and Kelsen, 2006).

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Table 4. The correlation between Government contribution and Willingness to Participate

Government Willingness to Contribution contribute Government Contribution Pearson 1 .795*** Correlation

Sig. (2-tailed) .000 N 43 43 Willingness to contribute Pearson .795*** 1 Correlation

Sig. (2-tailed) .000 N 43 43 **. Correlation is significant at the 0.01 level (2-tailed).

Table 4 illustrates the relationship government role and willingness to contribute in the Green Supply Chain Initiative. Correlation values of 0.795 and the second factor is the level of significance (2-tailed) is 0.000. The null hypothesis was rejected, thus it can be concluded that there is a significant relationship between the government role and the willingness persuaded to participate in the Green Supply Chain Initiative. In recent decades, especially in the environmental sustainability challenges life has begun to be realized by the government in almost all countries in the world. The government cannot work alone and is very important to be able to work together with other stakeholders or with other countries, especially to address the problem in a global context. Over the past two decades has been a lot of multi-actor governance system that aims to realize the supply chain in a sustainable product (Blowﬁeld, 2003). Government engagement may be the most influential factor to encourage the participation of companies to go green. Study by Chien and Shih (2007) emphasizes that the government should be the deciding factor in a country which is associated with the success of a program. Governments can encourage businesses to adopt the environmental management system of voluntary programs related to promoting green supply chain (Kumar and Chandrakar, 2012). Increasing demand for sustainable products and services must be able to be anticipated by the government. To assist the transition towards a more efficient and less damaging to the economy, the government can play a key role. Rao (2004) explains that the government can provide support in the form of environmental incentives for the procure of machinery and machine sales tax duty discharge.

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Table 5. The correlation between Non Government Organization’s persuade and Willingness to Participate

Non Willingness to Government contribute Organization’s persuade Non Government Pearson 1 .781*** Organization’s persuade Correlation

Sig. (2-tailed) .000 N 43 43 Willingness to contribute Pearson .781*** 1 Correlation

Sig. (2-tailed) .000 N 43 43 **. Correlation is significant at the 0.01 level (2-tailed).

Table 4 illustrates the relationship Non Government Organization’s (NGOs) persuade and willingness to contribute in the Green Supply Chain Initiative. Correlation values of 0.781 and the second factor is the level of significance (2-tailed) is 0.000. The null hypothesis was rejected, thus it can be concluded that there is a significant relationship between the Non Government Organization’s persuade and the willingness persuaded to participate in the Green Supply Chain Initiative. Non-governmental organizations also one of the determining factors in ensuring the success of the company reached the management supply chain. NGOs can use their roles to encourage companies to engage in sustainable supply chain management (Brammer et al., 2011). Generally, the role of NGOs is more emphasis on the development of the relationship between technical and social impact. Some companies have a concern with non-governmental organizations associated with sustainable practices, such as mining, forestry, agribusiness, electronics, garments, and footwear (Perez-Aleman and Sandilands, 2008). In addition, Kramer and Kania (2006, p. 28) noted that the role of non-governmental organizations in assisting companies to design more comprehensive strategy can be easily achieved due to a deeper understanding of social issues. Non-governmental organizations can create an interesting contribution to the green supply chain sector and more intensively to support these contributions. Emphasis may be focused on creating a better relationship between the activities of NGOs, and other stakeholders including the government and consumers.

5. CONCLUSION Electronic waste recycling activities related to the issue of sustainable development has become one of the interesting issues in the framework of the discussion on the future of electronic waste. Electronic waste recycling activities in the informal sector is not really a sustainable solution. Sustainability becomes a keyword for companies to harmonize itself with the mission owned and customer engagement. It is necessary to increase the attention the importance of green supply chain initiatives and organizations are motivated to improve the environmental performance and economic efficiency. All stakeholders such as consumers, governments and non- governmental organizations in the supply chain must work in accordance with their respective

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capacities in order to achieve success in greening the supply chain green. Linkages between the stakeholders to make the green supply chain sustainability as a goal in a decisive factor. The result of this study may be used as a starting point for designing a better investigation of the development of green supply chain on electronic waste informal sectors.

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