Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning
Objective: This study aims to address the challenges of demand variability in Indonesia's poultry industry, which often leads to production inefficiencies, including overproduction and shortages, by proposing a stochastic production plan that minimizes costs associated with these inefficiencies...
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| Format: | Article |
| Language: | English |
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Universitas Islam Nahdlatul Ulama Jepara
2024-12-01
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| Series: | Journal of Management and Entrepreneurship Research |
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| Online Access: | https://doi.org/10.34001/jmer.2024.12.05.2-51 |
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| author | Sri Sulandjari |
| author_facet | Sri Sulandjari |
| author_sort | Sri Sulandjari |
| collection | DOAJ |
| description | Objective: This study aims to address the challenges of demand variability in Indonesia's poultry industry, which often leads to production inefficiencies, including overproduction and shortages, by proposing a stochastic production plan that minimizes costs associated with these inefficiencies within the context of the Indonesian cooperative funding system. Research Design & Methods: A stochastic lot-sizing model was developed, and an experiment was set up with five assessment strategies: basic average demand plan, high reliability demand coverage, cumulative demand, cyclical surplus adjustment, and consecutive surplus adjustment plans. The evaluation phase was conducted at two confidence levels (α = 0.90 and α = 0.95) to assess each plan's ability to minimize total costs effectively. Findings: The results revealed that the cumulative demand strategy consistently outperformed other strategies, minimizing surplus and shortage costs at both α = 0.90 and α = 0.95. This plan demonstrated the lowest surplus-to-demand ratio, making it the most effective in managing production inefficiencies and reducing costs. Implications and Recommendations: Implementing the cumulative demand strategy could significantly enhance the efficiency of production planning in Indonesia's poultry industry by reducing waste and optimizing resources, especially in cooperative funding systems. Contribution & Value Added: This study contributes to the literature by providing an empirical analysis of production planning strategies in the context of demand variability, offering valuable insights into cost-effective solutions for handling production inefficiencies in the poultry industry. |
| format | Article |
| id | doaj-art-c2e90d8cb6404c8db3977e2abc82e04a |
| institution | Kabale University |
| issn | 2723-1658 2723-1666 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Universitas Islam Nahdlatul Ulama Jepara |
| record_format | Article |
| series | Journal of Management and Entrepreneurship Research |
| spelling | doaj-art-c2e90d8cb6404c8db3977e2abc82e04a2025-01-13T03:21:25ZengUniversitas Islam Nahdlatul Ulama JeparaJournal of Management and Entrepreneurship Research2723-16582723-16662024-12-01528510210.34001/jmer.2024.12.05.2-51Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of PlanningSri Sulandjari0Universitas Kristen Satya Wacana Salatiga, IndonesiaObjective: This study aims to address the challenges of demand variability in Indonesia's poultry industry, which often leads to production inefficiencies, including overproduction and shortages, by proposing a stochastic production plan that minimizes costs associated with these inefficiencies within the context of the Indonesian cooperative funding system. Research Design & Methods: A stochastic lot-sizing model was developed, and an experiment was set up with five assessment strategies: basic average demand plan, high reliability demand coverage, cumulative demand, cyclical surplus adjustment, and consecutive surplus adjustment plans. The evaluation phase was conducted at two confidence levels (α = 0.90 and α = 0.95) to assess each plan's ability to minimize total costs effectively. Findings: The results revealed that the cumulative demand strategy consistently outperformed other strategies, minimizing surplus and shortage costs at both α = 0.90 and α = 0.95. This plan demonstrated the lowest surplus-to-demand ratio, making it the most effective in managing production inefficiencies and reducing costs. Implications and Recommendations: Implementing the cumulative demand strategy could significantly enhance the efficiency of production planning in Indonesia's poultry industry by reducing waste and optimizing resources, especially in cooperative funding systems. Contribution & Value Added: This study contributes to the literature by providing an empirical analysis of production planning strategies in the context of demand variability, offering valuable insights into cost-effective solutions for handling production inefficiencies in the poultry industry.https://doi.org/10.34001/jmer.2024.12.05.2-51egg production planningpoultry industry optimizationproduction cost minimizationstochastic modellinguncertain demand variability |
| spellingShingle | Sri Sulandjari Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning Journal of Management and Entrepreneurship Research egg production planning poultry industry optimization production cost minimization stochastic modelling uncertain demand variability |
| title | Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning |
| title_full | Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning |
| title_fullStr | Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning |
| title_full_unstemmed | Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning |
| title_short | Optimizing Egg Production in Indonesia Using a Robust Stochastic Approach of Planning |
| title_sort | optimizing egg production in indonesia using a robust stochastic approach of planning |
| topic | egg production planning poultry industry optimization production cost minimization stochastic modelling uncertain demand variability |
| url | https://doi.org/10.34001/jmer.2024.12.05.2-51 |
| work_keys_str_mv | AT srisulandjari optimizingeggproductioninindonesiausingarobuststochasticapproachofplanning |