Integrated Multi-Vendor Single-Buyer Inventory System Model in Textile Waste Processing Industry

Abstract

PT. Superbtex Nonwoven Division is one of the industries implementing a green manufacturing system in Bandung by using textile solid waste as raw material and processing it into value-added finished products. However, the solid waste generated by consumers and garment factories is very large and cannot be accommodated in its entirety by PT. Superbtex Nonwoven Division. Another problem arises in terms of inventory both for vendors and buyers; delivering waste from vendors to buyers in small quantities and frequently can lower inventory costs for buyers, but concurrently raise transportation expenses for vendors, and vice versa. Therefore this research was conducted to solve the problem of an integrated multi vendor-single buyer inventory system that considers independent transportation, sorting, and disposal to find the minimum total system cost by finding the optimal value of order lot size, delivery frequency, and proportion of order lot size. that each vendor needs to send to the buyer. Problem-solving is done using the Mixed Integer Non Linear Programming (MINLP) method with the LINGO 18.0 solver. The results obtained from this study stated that the sorting costs at vendor 1 (S1), the sorting costs at the buyer (Sb), the transportation variable costs (Fy), the delivery truck capacity (X), and the demand rate (D) have a significant effect to changes in total system cost (TC). So that the five parameters need to be estimated carefully to determine the optimal system cost.