Simulation of Strategic Planning for Compound Storing and Shipment

Abstract

In 2015, AFTA made amendment for rubber commodity’s import duties, especially import duties imposed on natural rubber to China. This amendment gives negative impact on companies that use natural rubber as its main raw material since they have to pay additional import duties for imported natural rubber. One of the ways to cope with the increase of the financial burden is by changing the raw material supply into work in process goods that have higher levels of natural rubber, as is done by the XYZ Company in China. In exchange of natural rubber, the XYZ Company is importing work in process goods, called compound, which is supplied by its group company in Indonesia. The production process of compound is effecting regular operational in Indonesia XYZ Company, which will be highlighted in this paper. The focus of this research is the area of the storage and delivery of compound and problem analysis will be performed by cause and effect diagram. The purpose of this research is to find more efficient alternative processes, compare to current process, thus the data collection is done by observation and interviews to produce alternatives that can be applied in real practice. Researcher uses ARENA software and manual calculations to measure the utilization of the storage area, the effectiveness of the delivery area and mileage required forklift for 30 days of work as method to determine the best alternative

Keywords: Startegic Planning, Warehouse, ARENA simulation, Cause and Effect Diagram