REDUCTION OF BULLWHIP EFFECT ON COMMODITY SUPPLY CHAIN IN FRESH FRUITS AND VEGETABLES WHOLESALE LOTTEMART BOGOR

Bimahri Qaulan Tsaqiela,Yandra Arkeman,Bunasor Sanim

doi:10.17358/ijbe.2.1.43

Bimahri Qaulan Tsaqiela, Yandra Arkeman + Show 1 more

Open Access

https://doi.org/10.17358/ijbe.2.1.43

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Abstract

The purpose of this study was: (1) To identify supply chain structure of fresh fruit and vegetables in LotteMart Wholesale Bogor, (2) Analyze the value of bullwhip effect in the supply chain of fresh fruit and vegetables in LotteMart Wholesale Bogor. (3) Analyze the factors that led to the bullwhip effect in the supply chain of fresh fruit and vegetables at LotteMart Wholesale Bogor, (4) Reduce the bullwhip effect in the supply chain of fresh fruit and vegetables in LotteMart Wholesale Bogor. Method that used in this research are bullwhip effect formula to analyze the value of bullwhip effect and simulation to reduce bullwhip effect with software Arena Rockwell 14.0. The results showed that fresh fruit and vegetables in LotteMart Wholesale Bogor experienced bullwhip effect and also different scenario of time between arivals distribution able to reduce bullwhip effect value in supply chain. Keywords: supply chain, bullwhip effect, arena simulation, LotteMart

Highlights

Horticulture belongs to conmmercial commodities of high value
(3) Analyze the factors that led to the bullwhip effect in the supply chain of fresh fruit and vegetables at LotteMart Wholesale Bogor, (4) Reduce the bullwhip effect in the supply chain of fresh fruit and vegetables in LotteMart Wholesale Bogor
The results showed that fresh fruit and vegetables in LotteMart Wholesale Bogor experienced bullwhip effect and different scenario of time between arivals distribution able to reduce bullwhip effect value in supply chain

Summary

INTRODUCTION

Horticulture belongs to conmmercial commodities of high value. The sub-sector horticulture contribution to Gross Domestic Product (GDP) value from year to year tend to increase. Another impact of a bullwhip effect is the increase of production cost, storage cost, transportation cost, delivery and acceptance cost, additional lead time, decrease of product and at last decrease in profit (Chopra dan Meindl, 2013) For those reasons, it is important to study a Bullwhip Effect on the supply chain of fresh fruits and vegetables in modern markets. This research is a case study on the supply chain in a modern market LotteMart Wholesale Bogor on the commodities of fresh fruits and vegetables. The qualitative descriptive method is used to explain a description of fresh fruits and vegetable supply in LotteMart Wholesale Bogor and to analyze factors that cause a bullwhip effect. Quantitavie methos are used to analyze a bullwhip effect value on the freh fruits and vegetable supply chain in LotteMart Wholesale Bogor. : the variants’ coefficient value that is obtained from calculation of the number of consumers’ demand

RESULT

Notes:

Price Fluctuation

Irregular order batching

Decentralized demand forecast updating

Conclusions