Skip to main navigation Skip to search Skip to main content

Performance Assessment of Fertilizer Industry Supply Chain Using a System Dynamics Approach

  • Institut Teknologi Sepuluh Nopember
  • Petrokimia Gresik

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)

Abstract

The Indonesian fertilizer industry strongly emphasizes supply chain activities, but the high logistics costs remain a pressing challenge that needs urgent resolution. Therefore, this study has aimed to identify the most efficient fertilizer distribution costs in order to enhance the affordability of subsidized fertilizer allocation to the benefit of farmers. The paper has explored the application of system dynamics to address complex challenges in supply chain management. Two schemes for distributing fertilizer have been examined, namely the single trip and the milk run schemes. A case study focusing on fertilizer distribution in Cluster 4 (Dumai, Pangkal Pinang, and Bengkulu) has been conducted. Through distribution simulation, the goal has been to minimize operational costs based on these two schemes and achieve cost reduction by varying ship sizes. The simulation results have eventually favored the milk run scheme as the most cost-effective option for Dumai, Pangkal Pinang, and Bengkulu.

Original languageEnglish
Pages (from-to)557-565
Number of pages9
JournalInternational Review of Mechanical Engineering
Volume17
Issue number11
DOIs
Publication statusPublished - 2023

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 2 - Zero Hunger
    SDG 2 Zero Hunger

Keywords

  • Distribution
  • Fertilizer
  • Ship
  • Simulation
  • System-Dynamics

Fingerprint

Dive into the research topics of 'Performance Assessment of Fertilizer Industry Supply Chain Using a System Dynamics Approach'. Together they form a unique fingerprint.

Cite this