A Supplier-Manufacturer Model for Procurement Plan in Export Oriented Furniture Industry with Sustainability Considerations

  • Muh. Hisjam
  • Achmad Habibie
  • Wahyudi Sutopo
  • Kuncoro Harto Widodo
Chapter
Part of the Lecture Notes in Electrical Engineering book series (LNEE, volume 186)

Abstract

Due to limited supply of high quality of teak log as raw materials for export oriented furniture industry in Indonesia, procurement plan becomes a critical operation. The furniture industry (manufacturer) buys high quality teak log from Perum Perhutani (supplier), a state-owned forestry company that has responsibility not only to supply teak logs but also to keep the environmental and social role of the forest in Indonesia. The manufacturer should also consider sustainability due to the demands of the stakeholders. This study proposes a relationship model between supplier and manufacturer for procurement plan and formulated as Goal Programming to get the most favorable solution considering economical, environmental, and social aspect both of supplier and manufacturer. The results show that the model can be used to determine the decision variables considering sustainability aspects.

Keywords

Export oriented furniture industry Procurement plan Goal programming Supplier-manufacturer relationship model Sustainability Teak wood 

Notes

Acknowledgments

Thanks to the Perum Perhutani Unit I Central Java, CV. Valasindo Sentra Usaha and ASMINDO Komda Solo Raya which have become partners in the research project. The research is supported by the Directorate General of Higher Education (DGHE), Ministry of National Education, Republic of Indonesia in HIBAH BERSAING Research Program (contract No. 04/UN27.8/PN/2012).

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Copyright information

© Springer Science+Business Media Dordrecht 2013

Authors and Affiliations

  • Muh. Hisjam
    • 1
  • Achmad Habibie
    • 1
  • Wahyudi Sutopo
    • 1
  • Kuncoro Harto Widodo
    • 2
  1. 1.Logistics and Business System Laboratory, Department of Industrial EngineeringSebelas Maret UniversitySurakartaIndonesia
  2. 2.Department of Agro-industrial TechnologyGadjah Mada UniversityBulaksumurIndonesia

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