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All Journal Kemakmuran Hijau: Jurnal Ekonomi Pembangunan Sustainable Urban Development and Environmental Impact Journal
Ratih Dyah Kusumastuti
Department of Management, Faculty of Economics and Business, Universitas Indonesia, Depok, West Java 16424
Economics, Econometrics & Finance Environmental Science Public Health Social Sciences

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Simulation of hybrid push/pull production system for cost reduction and resource optimization in sustainable automotive manufacturing Harrtyan Muhammad; Ratih Dyah Kusumastuti
Sustainable Urban Development and Environmental Impact Journal Vol. 2 No. 1: (February) 2025
Publisher : Institute for Advanced Science, Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/sudeij.v2i1.2025.1730

Abstract

​​​Background: The rapid development of the automotive industry requires an efficient production system to minimize costs and optimize resources. PT XYZ, an automotive component manufacturer, previously relied on a push production system based on demand forecasts. However, discrepancies between forecasted and actual demand led to excess inventory and increased storage costs. To address this issue, a hybrid push/pull production system was introduced, aiming to balance inventory levels while maintaining production efficiency. Methods: This study employs a discrete event simulation method using Arena software to analyze the impact of implementing a hybrid push/pull production system at PT XYZ. The research utilizes company data from October 2016 to compare the efficiency of different production scenarios. Findings:  Findings indicate that adopting a hybrid push/pull production system significantly reduces inventory costs while preventing backorders. The system modifies the upstream process by transitioning from forecast-based production to a pull system that aligns with actual demand. Meanwhile, the push system remains in use for raw materials and semi-finished components to ensure production continuity. Additionally, worker and machine utilization decreased, allowing the company to reallocate resources for other product lines, thereby enhancing production capacity. Conclusion: The study concludes that implementing a hybrid push/pull production system provides PT XYZ with a competitive advantage by reducing operational costs without compromising demand fulfillment. However, this system requires careful inventory tracking and employee adaptation. In the long run, reduced storage costs lead to substantial savings. Novelty/Originality of this article: The novelty of this research lies in its application of hybrid push/pull production to an SME automotive manufacturer in Indonesia, demonstrating its effectiveness in reducing costs and improving resource utilization. 
The influence of sustainable supply chain management on circular economy capabilities in MSMEs in the fashion and cosmetics industries Theresia Mayke Nindiya; Ratih Dyah Kusumastuti
Kemakmuran Hijau: Jurnal Ekonomi Pembangunan Vol. 3 No. 2: (August) 2026
Publisher : Institute for Advanced Science, Social, and Sustainable Future

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61511/jekop.v3i2.2026.3844

Abstract

Background: The adoption of circular economy principles offers significant opportunities for micro, small, and medium enterprises (MSMEs) in Indonesia, particularly because of their close interaction with consumers who generate post-consumption waste. This study examines how sustainable supply chain management contributes to the development of circular economy capabilities among MSMEs operating in the fashion and cosmetics sectors. Methods: Data were collected from 72 MSMEs located in Java and Bali that had implemented at least one of the 3R practices (reduce, reuse, or recycle). The relationships among variables were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: The analysis revealed that green supply chain management and sustainable supply chain design positively contribute to circular economy capabilities. In addition, supply chain relationship management affects circular economy capabilities indirectly through its influence on sustainable supply chain design. Conclusion: Sustainable supply chain practices play an important role in strengthening the ability of MSMEs to adopt circular economy principles. The results highlight the need for integrated supply chain strategies to support sustainable business transformation within the fashion and cosmetics industries. Novelty/Originality of this article: This study extends the circular economy literature by providing empirical evidence from Indonesian MSMEs and demonstrating both direct and indirect pathways through which sustainable supply chain management enhances circular economy capabilities.
Co-Authors Harrtyan Muhammad Theresia Mayke Nindiya