Abstract: Availability of raw materials is important for
Indonesia as a furniture exporting country. Teak log as raw materials
is supplied to the furniture industry by Perum Perhutani (PP). PP
needs to involve carbon trading for nature conservation. PP also has
an obligation in the Corporate Social Responsibility program. PP and
furniture industry also must prosecute the regulations related to
ecological issues and labor rights. This study has the objective to
create the relationship model between supplier and manufacturer to
fulfill teak log demand that involving teak forest carbon
sequestration. A model is formulated as Goal Programming to get the
favorable solution for teak log procurement and support carbon
sequestration that considering economical, ecological, and social
aspects of both supplier and manufacturer. The results show that the
proposed model can be used to determine the teak log quantity
involving carbon trading to achieve the seven goals to be satisfied the
sustainability considerations.
Abstract: This research is intended to develop a raw material allocation model in timber processing industry in Perum Perhutani Unit I, Central Java, Indonesia. The model can be used to determine the quantity of allocation of timber between chain in the supply chain to select supplier considering factors that are log price and the distance. In determining the quantity of allocation of timber between chains in the supply chain, the model considers the optimal inventory in each chain. Whilst the optimal inventory is determined based on demand forecast, the capacity and safety stock. Problem solving allocation is conducted by developing linear programming model that aims to minimize the total cost of the purchase, transportation cost and storage costs at each chain. The results of numerical examples show that the proposed model can generate savings of the purchase cost of 20.84% and select suppliers with mileage closer.