Performance measurement for bottled water closed-loop supply chain (case study: PT Tirta Investama Plant Solok)

Sri, Widya Utami (2020) Performance measurement for bottled water closed-loop supply chain (case study: PT Tirta Investama Plant Solok). Diploma thesis, Universitas Andalas.

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Abstract

Sustainability has become an important issue since the world came to realize the threats to the survival of our planet. Businesses or industries are considered as key actors in the implementation of sustainability. Sustainable manufacturing practices have recently received significant attention in academia and within industries to improve supply chain practices. Closed-loop is a strategy towards achieving a sustainable supply chain. Closed-loop supply chain (CLSC) is a method to design and/or redesign the supply chain that incorporates recycling of metals and plastics, repair and reuse of parts and components for the production of new devices, and remanufacturing and/or refurbishing of entire discarded products for use as second-hand devices. PT Tirta Investama Plant Solok has implemented a closed-loop supply chain since 2015. However, PT Tirta Investama Plant Solok doesn’t know how well the supply chain is performing. Thus, it becomes urgent for the company to measure the performance of their closed-loop supply chain. PT Tirta Investama Plant Solok is a company that incorporated into the Danone Group. As one of the subsidiaries, PT Tirta Investama Plant Solok only produces the bottled water with brand “AQUA”. There are three types of bottled water produced by PT Tirta Investama Plant Solok, namely AQUA 600 mL, AQUA 1500 mL, and AQUA Gallon. The aim of this study is to assess the closed-loop supply chain performance of PT Tirta Investama Plant Solok. The measurement system is based on the evaluation framework adopted from Olugu et al. (2010). Data processing is conducting using a fuzzy rule-based system to assess the performance of PT Tirta Investama Plant Solok’s closed-loop supply chain. The steps of data processing using the fuzzy rule-based system are determining fuzzy sets and fuzzy inputs, implementing fuzzy operators, implementing function implications, compose all outputs, and defuzzification. After defuzzification is conducted, it is resulting in the final score of PT Tirta Investama Plant Solok’s closed-loop supply chain is 4.85 and classified into a fair category. Nine out of ten measures in the forward chain have a score higher than 7, meaning that these nine measures have been classified as a good category. In contrast, one other measure only has a score of 2.00, which is classified into a poor category, i.e., product characteristics. Based on the results, the company needs to conduct improvements related to product characteristics. In terms of the reverse chain, two of the six measures, i.e., material features and supplier commitment have a score of 5.00, which is classified into the fair category, while the other four measures are classified as a good category with a score higher than 7. Improvements to those both measures can increase the performance of the reverse chain evaluation performance, which indirectly increases the overall performance of closed-loop supply chain performance. �

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