Abstract
The production and number of processed food industries have slightly increased; as a result, the companies must compete to maximize their profits by conducting their efficient production process. CV. Fiva Food is one of the companies in the field of processed foods, especially in processed meat that has implemented supply chain management. It is necessary for the company to take measurements of its performance and efficiency for the entire supply chain such as procurement of raw materials. The purposes of this study were to analyze the performance of the company's supply chain and determine the most efficient method of procurement for its raw materials as well as and to provide recommendations for the company to improve its performance of entire supply chain. This study used SCOR in analyzing the performance of supply chain and EOQ and POQ method to be compared with the method that the company uses to determine which method of procurement for raw materials is the most efficient one. The result showed that based on the matrix, the company's performance is unfavorable when it was compared to the benchmark performance of inventory days of supply. In addition, this study showed that the POQ method produces the lowest total inventory cost with savings of Rp6.647.015 for raw materials of MDM whereas EOQ method produced the lowest total inventory cost with savings of Rp222.153,78 for raw materials of FQ85CL. Keywords: performance suppy chain, SCOR, fiva food, EOQ, POQ
Highlights
Food and beverage industry is one of the strategic industries that give a major contribution to Gross Domestic Product (GDP) in the first quarter of 2014 with the amount of 23,56%
In regards to the related to the issues presented, the objectives of the research were to analyze the performance of supply chain management currently carried out by the company, to identify the most efficient method of procurement of raw materials conducted by the company i.e. Economic Order Quantity (EOQ) method, Period Order Quantity (POQ) method and company method, and to provide alternative solutions for controlling the supply of raw materials efficiently
The results showed that POQ technique produces the lowest total cost for inventory for plywood materials and generates savings up to 11,44%, while LFL produces the lowest total cost of inventory for MDF raw materials and produces savings of 30% compared to that using the company method
Summary
Food and beverage industry is one of the strategic industries that give a major contribution to Gross Domestic Product (GDP) in the first quarter of 2014 with the amount of 23,56%. The Central Bureau of Statistics (2014) states that there was growth in food production throughout the quarter 1 of 2014 by 9%. This growth increased if compared to the production of food in the quarter 1 of 2013 by 0,3%. Meat processing industry is one of the food industry subsectors that has experienced increased competition in terms of both quality and quantity. Chain management (SCM) is an integration of key business processes from an end user through an original supplier that provides products, services, and information that add value for customers and other stakeholders (Chan and Qi, 2003)
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