TY - JFULL AU - Muh. Hisjam and Nancy Oktyajati and Wakhid A. Jauhari and Wahyudi Sutopo PY - 2012/1/ TI - Model Development for Allocation of Raw Material in Timber Processing Industry in Indonesia T2 - International Journal of Industrial and Manufacturing Engineering SP - 2669 EP - 2675 VL - 6 SN - 1307-6892 UR - https://publications.waset.org/pdf/3296 PU - World Academy of Science, Engineering and Technology NX - Open Science Index 72, 2012 N2 - 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. ER -