Modelling Rattan Supply Chain in Palu Special Economic Zone
Husein Hi. M. Soleh
Department of Management, Faculty of Economics, Tadulako University, Palu, Central Sulawesi, Indonesia
Int. J. Grad. Res. Rev.Vol-3, Issue-4: 72-76
Copyright (c) 2017 International Journal of Graduate Research and Review
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This work is licensed under a Creative Commons Attribution 4.0 International License.
Rattan is a natural wealth that can be utilized for making of household furniture, office furniture, handycraft and others. One rattan production center is a special economic area of ??Palu city where the raw materials of rattan can be obtained from several regencies in Central Sulawesi, and the nearest province such as West Sulawesi and Gorontalo. In 2011, the government adopted a policy of prohibiting the export of all types of raw rattan to foreign countries so that the need for raw materials of rattan in the country should increase. The reality in Central Sulawesi actually reduced the supply of raw materials of rattan. Therefore, the procurement of raw material terminals is one of alternative to meet the providers of raw materials of rattan. Palu City as one of the Special Economic Zone area in Indonesia became the object of research in the allocation of raw materials as the main terminal of rattan industry in Central Sulawesi. The purpose of this research is to get the model of allocation determination raw materials of rattan for the rattan industry so as to minimize the total cost. Problem solving of allocation model determination by developing model from previous research with Linear Programming (LP) method. The output of this model is to obtain an optimal allocation determination model in the development of the competitiveness of rattan industry in Central Sulawesi. The total cost of the allocation model is the total cost of purchase, the total cost of transportation from source to the raw material terminal, the total cost of storage in the raw material terminal and the total transportation cost from the raw material terminal to the rattan industry center. If the value of the four variables increases then the total cost will also increase, and if the value of the four variables is reduced then total inbound cost will also decrease. Once the linear programming model is run in Premium Solver Platform V9.0 in Microsoft Excel it will be obtained a value that minimizes the total cost and will improve the competitiveness of the rattan industry in Central Sulawesi.