Articles

Simple Multi-Attribute Rating Technique for Warehouse Location Selection (Case Study: PT. PPT)

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Indonesia’s Manufacturing Industry, encompassing processing and non-oil and gas processing, grew in Q3 of 2022, contributing 17.88% and 16.10% to GDP. Transportation and storage played a significant part, with a 15.93% year-on-year growth in Q1 2023, highlighting the sector’s importance. PT. PPT is a sub-holding of one of Indonesia’s companies. The company manages to trade PP/PE significantly from more sources (import, local producer, or local trader). This research will determine and analyze the criteria for the selection of warehouse locations for PT. PPT analyzes the weight of each criterion at each location in the warehouse location selection process for PT. PPT and obtain the priority location for PT. PPT to build a new warehouse.  This research aims to guide and help the decision makers to choose and find a suitable location based on the Centre of Gravity (CoG) analysis conducted by a third-party consultant. The five locations resulting from the Centre of Gravity (CoG) as alternatives will be analysed with Kepner-Tregoe Analysis in the decision-making process, using Situation Appraisal defined in Business Issues. The author then employs a Rich Picture and Fishbone Diagram to assess the scenario or the process of select the new warehouse. The decision analysis was carried out in eight stages using the one of Multi-Criteria Decision Making (MCDM) method, which is the Simple Multi-Attribute Rating Technique (SMART). Lastly, using the preceding analysis, undertake a Potential Problem Analysis. The major criterion is the distance to the customer, which aligns with the company’s emphasis on customer satisfaction. Demand growth affects warehouse capacity, with more growth necessitating a larger facility. Distance from suppliers reduces delivery lead time, and the size of the land must accommodate demand growth and product capacity for PT. PPT.

Decision Analysis to Improve Company’s Time Utilization during Clove Harvest-Interval Using Analytical Hierarchy Process and Situation Appraisal

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Indonesia is a country that has very diverse natural resources, one of which is spices. Various kinds of spices such as cloves, nutmeg, ginger, turmeric, candlenut, pepper, cinnamon, and vanilla are what make Indonesian spices known worldwide and contribute to the country’s economy. Clove is a typical Indonesian spice originating from the Maluku islands (Ternate and Tidore). Currently, cloves have been cultivated in various regions in Indonesia, namely Java, Central Kalimantan, East Kalimantan, Sulawesi, and others. Clove season in Indonesia occurs once or twice a year, namely from April to May and October to November. The farmers will harvest ripe clove flowers, then the clove flowers are dried in the sun and processed as raw materials for the production of cigarettes, cosmetics, and others. CV. Rempah Jaya is one of the leading and best clove suppliers in Indonesia. Especially variations of cloves such as whole cloves, clove oil, dried clove leaves, dried clove stems, and clove ash. Usually, the supply of cloves to the cigarette factory is held every few months in large quantities, so a lot of spare time is available before sending it to the factory. Therefore CV. Rempah Jaya needs the right work to be done when there is a time vacuum. The purpose of this study is to increase the time utilization of CV companies. Rempah Jaya during the clove harvest interval. In this study, a situation analysis was carried out using the Kepner-Tregoe method, then external and internal analysis was carried out using Mendelow’s Matrix and SWOT Analysis methods. After that, root cause analysis was carried out using Ishikawa Diagram. Then the decision-making process is carried out using the Analytical Hierarchy Process (AHP) method. From the results of the AHP method, alternative values were obtained for the three available criteria, namely oil distillation, spice mixtures, and collaboration with the food and beverage industry with values of 0.64, 0.19, and 0.17.