Track: Supply Chain Management

Abstract

Batik is a cultural heritage that has been widely used as formal clothing in Indonesia. Batik SME strives to develop its production process to meet the high demand. However, batik production waste management is a crucial thing that has not been fully implemented. Numerous educational institutions have begun to use technical improvements linked to batik waste processing technology, but commercialization issues continue to hinder the implementation process. This study will develop a mixed-integer linear programming (MILP) model to address the supply chain network for commercializing batik waste processing equipment KOMBAT. The model will be developed by considering the credit payment factor using ILOG CPLEX to maximize profit. From the model output, the number and location of the supplier, the number of goods assigned from suppliers to each demand point, and the overall cost of the supply chain were known.