Strategic Policy Model for Management of Plywood Industry Using System Dynamic Methods

Abstract

Purpose: This study aims to obtain a strategic model for the arrangement of the Indonesian plywood industry after the monetary crisis with high uncertainty. Theoretical framework: This study discusses several theoretical frameworks which include Strategic Policy, Plywood Industry, and System Dynamic Modeling. Design/methodology/approach: This study was conducted covering the stages of collecting data and information, as well as the stages of Dynamic System Modeling. Findings: The result of the study is the preparation of dynamic systems through formulation into dynamic sub-models, namely: plywood industrial production, sawn timber industry, chip mill industrial production, log raw material production for the wood industry, log economic contribution to the center and the region, illegal export logs, domestic and exports of the wood industry as well as financial feasibility of the plywood industry. Research, Practical & Social implications: The results of the study are useful for decision makers in Plywood Industry Management on work culture of Indonesia fabricaton because they show that the proposed practices have an important impact on organizational company excellence. Originality/value: The policies carried out in the plywood industry structuring strategy include a national plywood production limitation policy, a national sawn wood production limitation policy, and a cutting restriction policy in the form of the Annual Allowable Cutting in various combinations which are outlined in eight main policies scenarios and translated into 28 scenarios.