Abstract
Challenges facing small and medium enterprises are different than those facing larger corporations. However, all enterprises also share the same underlying problem that is fulfilling customers’ demand. Indonesia has more than 50 millions small and medium enterprises, which is larger than the number of population in some countries. In some areas, these enterprises have formed some sort of clusters based on their operations and their geographical natures. In order to develop their operational efficiency, it is imperative that they form strategic relationships within each other. We attempt to conceptually model these relationships in term of supply chains. We then formulate some mathematical models in attempt to efficiently develop the supply chain planning model for small and medium enterprises.
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