%0 Journal Article
	%A Muh. Hisjam and  Nancy Oktyajati and  Wakhid A. Jauhari and  Wahyudi Sutopo
	%D 2012
	%J International Journal of Industrial and Manufacturing Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 72, 2012
	%T Model Development for Allocation of Raw Material in Timber Processing Industry in Indonesia
	%U https://publications.waset.org/pdf/3296
	%V 72
	%X 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.

	%P 2670 - 2675