Food waste is a critical issue in the bakery industry due to perishable raw materials, short product shelf life, and demand uncertainty. This study aims to develop and validate a circular supply chain model to reduce food waste in a bakery SME in Yogyakarta, Indonesia. The research integrates the Supply Chain Operations Reference (SCOR) model, Value Stream Mapping (VSM), Root Cause Analysis (RCA), and Discrete Event Simulation (DES). SCOR analysis indicates low material utilization efficiency, with Material Utilization Rate values below 0.78 and total food waste reaching 612 kg per day, resulting in a waste cost of IDR 9,678,000 per day. VSM analysis reveals that Non-Value Added activities occur in the production process due to waiting time. Root Cause Analysis identifies demand-misaligned production planning, manual process variability, and the lack of utilization of residual material as the main drivers of food waste. Based on these findings, a circular supply chain model is proposed through redesigned process flows, a reuse-and-recycle supply chain, optimized process facilities, and improved synchronization of material and information flows. Projection using DES based on BPMN shows elimination of waiting time, stabilization of cycle time with a prevalence reduction of 19%, and reduction of total food waste cost to IDR 7,044,638.

Keywords

Bakery SMEs, Circular Supply Chain, Discrete Event Simulation, Food Waste Reduction, and Value Stream Mapping