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All Journal Majalah Ilmiah Pengkajian Industri
Fellek Getu Tadesse
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Aerospace Engineering Chemical Engineering, Chemistry & Bioengineering Engineering Industrial & Manufacturing Engineering Transportation

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DEVELOPING SUPPLY CHAIN NETWORK WITH PIECEWISE LINEAR TRANSPORTATION COST FOR A SMALL-AND-MEDIUM ENTERPRISE (SME) IN CILEGON Kurniawan, Bobby; Irman, Ade; Gunawan, Akbar; Umyati, Ani; Febianti, Evi; Wahyuni, Nuraida; Ferdinant, Putro Ferro; Ekawati, Ratna; Fellek Getu Tadesse
Majalah Ilmiah Pengkajian Industri Vol. 15 No. 2 (2021): Majalah Ilmiah Pengkajian Industri
Publisher : Deputi TIRBR-BPPT

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Abstract

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