Supply chain design by developing causal loop diagram for patchouli oil business

Currently, Indonesia has not met the demand for patchouli oil globally, while patchouli oil is produced from various regions in Indonesia. For this reason, it is necessary to identify the problems that occur. Supply chain identification is an initial step that can be done to find issues that arise f...

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Bibliographic Details
Main Authors: Rahmayanti, D., Hadiguna, R. A., Santosa, S., Nazir, N., Yuliandra, B.
Format: Conference Proceeding
Language:English
Subjects:
Demand
Exports
Subsystems
Supply chains
Online Access:Get full text
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Summary:Currently, Indonesia has not met the demand for patchouli oil globally, while patchouli oil is produced from various regions in Indonesia. For this reason, it is necessary to identify the problems that occur. Supply chain identification is an initial step that can be done to find issues that arise from the whole system. This study aims to identify the activities of the patchouli oil business by using Causal Loop Diagram. Furthermore, building a supply chain based on the activities carried out by the patchouli oil business. Based on the actors involved in the patchouli oil supply, the system will be divided into five subsystems. The supply chain model for patchouli oil is divided into three models. The third model is considered to be more effective and efficient because it only involves two actors. However, this supply chain model has problems because farmers' patchouli oil often does not meet exporters' quality. From this research, the unfulfilled demand is due to the low quality of the patchouli oil produced. For the exporters' demand to be fulfilled, the supply of patchouli oil quality and quantity from farmers must be sufficient.
ISSN:0094-243X
1551-7616
DOI:10.1063/5.0106274