Track: Undergraduate Research Competition

Abstract

X Ltd. is a manufacturing company that produces office furniture, such as table, drawer, and office cabinet. Main raw material of office furniture products by X Ltd. is particle board. Errors in decision making in particle board supplies can affect the production cycle which has an impact on increasing waste, cost, and decreasing profit. The right decision-making analysis using the system dynamics model can help logistics manager in determining the right strategy in achieving optimal results while increasing company profits and minimizing costs. The AME calculation for model validation produces a value of 14.74% (raw material stock ready), 14.79% (customer demand), 4.65% (finished goods), and 7.48% (profit). The results of the system dynamics model simulation found that scenario 1 is the best decision scenario for company with average growth rates for raw materials of ready stock amounting to 644 pcs-2125 pcs, customer demand of 256 pcs-408 pcs, finished goods of 43 pcs-977 pcs, and profit of Rp. 794,879,346.00-Rp. 1,841,444,136.00.