Publisher

ITATSITATS

Journal Journal of Applied Sciences, Management and Engineering TechnologyJournal of Applied Sciences, Management and Engineering Technology Abstract

This research examines the supply chain optimization strategy of a UK-based multinational cigarette company with manufacturing plants in Indonesia, with a primary focus on improving operational efficiency and sustainability through the application of a Design Thinking approach using the Double Diamond framework, optimization methods, and Value Stream Mapping (VSM) tools. The project is aimed at addressing a number of complex challenges in the supply chain, including high material costs, manufacturing inefficiencies, SKU complexity, and distribution and logistics inefficiencies. With the selection of a strategic end-country market that contributes more than 25% of the companys total volume (worth GBP 5 million in working capital), a thorough mapping of the current process and waste identification was carried out using a lean approach. The Discover and Define stages were used to explore the root causes through fishbone analysis and VSM, while the Develop stage designed solutions based on optimization methods such as Greedy Algorithm for material procurement, Simulated Annealing for production scheduling, and Mixed Integer Linear Programming (MILP) for logistics and transportation. The implementation of the Deliver phase solution resulted in production cost savings of more than GBP 2 million, cash flow release of GBP 15 million, improved customer service, and carbon emission reduction of up to 10%. The study confirms that the integration of Design Thinking approach, optimization methods, and Lean-Circular principles can improve operational efficiency and meet sustainability targets in a measurable and applicable manner.

Conclusion

The study successfully applied a Design Thinking approach to identify and address core supply chain issues, including material costs, production waste, SKU complexity, and logistics inefficiencies.The integration of optimization methods like the Greedy Algorithm, Simulated Annealing, and Mixed Integer Linear Programming resulted in significant financial benefits, including over £15 million in cash release and more than £2 million in cost savings.Furthermore, the implementation of sustainable practices, such as C48 box recycling and optimized truck utilization, contributed to a 10% reduction in carbon emissions, supporting the companys ESG goals.

Future Research

Penelitian lanjutan dapat dilakukan untuk mengeksplorasi penerapan kecerdasan buatan (AI) dan pembelajaran mesin (machine learning) dalam peramalan permintaan yang lebih akurat, terutama untuk SKU yang bersifat agile. Hal ini dapat meningkatkan efisiensi produksi dan mengurangi risiko kelebihan stok atau kekurangan pasokan. Selain itu, studi lebih lanjut perlu dilakukan untuk menginvestigasi potensi integrasi blockchain dalam rantai pasokan untuk meningkatkan transparansi dan ketertelusuran bahan baku, serta memastikan kepatuhan terhadap standar keberlanjutan. Terakhir, penelitian dapat difokuskan pada pengembangan model simulasi yang lebih komprehensif untuk menguji berbagai skenario rantai pasokan, termasuk gangguan potensial seperti bencana alam atau perubahan regulasi, guna meningkatkan ketahanan dan kemampuan adaptasi perusahaan terhadap perubahan lingkungan bisnis yang dinamis. Penelitian-penelitian ini diharapkan dapat memberikan wawasan yang lebih mendalam tentang bagaimana perusahaan dapat terus meningkatkan efisiensi, keberlanjutan, dan ketahanan rantai pasokannya di masa depan.

Metadata

File size	334.78 KB
Pages	12
DMCA	Report