Mechanism Sharing Order Information on Simple Supply
Chains (Manufacturers) in Reducing Schedule Instability
and Total Costs
Mochammad Aldy Anwar
1
, Elsa Rosyidah
2
, Agung Purnomo
3
Departement of Industrial Engineering, Universitas Nahdlatul Ulama, Sidoarjo, Indonesia
1
Departement of Environmental Engineering, Universitas Nahdlatul Ulama Sidoarjo,
Indonesia
2
Departement of Business Creation, Institut Teknologi Bina Nusantara, Malang, Indonesia
3
{elsarosyidah@gmail.com
2
}
Abstract. Instability in production planning (or better known as schedule
instability) always occurs, especially in the manufacturing industry. This makes
company companies make various efforts to minimize the level of instability.
There are several strategies that are generally used to minimize instability
schedules, including freezing, safety stock/buffer. In this study, we will try to use
an information sharing approach related to orders received by manufacturers to
minimize the consequences of instability schedules in a simple supply chain. A
simple supply chain system is the focus of this study consisting of one employer
and one supplier who share information regarding order orders. This research
will be conducted to study a full factorial experiment (full factorial experiment).
A variety of different operating conditions are also considered such as the
uncertainty of financing, the cost structure, and the inventory policy applied by
the company to be the part observed in this study. The results of this study,
namely through the existence of information sharing mechanisms through orders
received by manufacturers, are able to reduce the level of schedule instability in
each entity both manufacturing and supplier. In addition, through information
sharing, it is also able to eliminate the transfer of risks that manufacturers often
make to suppliers in the production planning section, as well as being able to
reduce total costs to manufacturing or supplier entities. Through this research, it
is expected to provide an understanding of the manufacturing industry of the
importance of sharing information in the supply chain system.
Keywords: Manufacturing, Instability, Industry
1. Introduction
Instability in production scheduling activities is inevitable, especially in industries engaged
in manufacturing. Instability in production scheduling (often known as schedule instability or
nervousness schedules) occurs due to scheduling mismatches with actual conditions that occur
on the production floor. Companies belonging to the manufacturing industry will try to
minimize the consequences of instability schedules which are considered as trigger indicators
in the supply chain performance measurement. The general dimensions that are often a
WESTECH 2018, December 08, Medan, Indonesia
Copyright © 2019 EAI
DOI 10.4108/eai.8-12-2018.2283906