The Design of Improvement for Supply Chain Flow of Citronella Fragrance Oil Refinery Industry as an Effort to Meet Customer Demand in Cimungkal Village of Sumedang Regency

Abstract

Citronella oil refinery in Cimungkal Village of Sumedang Regency is a process industry in Indonesia. It produces citronella oil (atsiri). The refinery industry has limitations in fulfillment of customer demand that is relatively high. This study draws a depiction of the supply chain flow that occurs along the supply chain in the area to conduct further observations. The depiction of the flow of supply chain aims to find out who the supply chain actors are and how much capacity they are able to produce. Furthermore, to increase productivity, this study identified the causes of waste by employing lean approach. After repair of the production of citronella oil refining was done, scheduling scheme of the upstream side (farmers) was performed to produce raw materials demanded by customer. The design was done by calculating requirements of raw material, labor, machinery, and others. It developed scenario based on the possibilities that occur. This research shows that the activity of citronella oil refining improvement requires 11 process with a total lead time of 274 minutes, with value added increased by 36% to 67.52%. it proposes second and third proposed scenarios with 30 days of work as the best alternative in order to increase customer demand and profits of the citronella oil refining in the Cimungkal Village of Sumedang Regency.