Optimizing Supply Chain Management in Coal Power Generation

Muhamad Iqbal Felani, Ariyana Dwiputra Nugraha, Mujammil Asdhiyoga Rahmanta
2017 Proceedings of the 6th International Conference on Operations Research and Enterprise Systems  
Indonesian government launched Fast Track Program Phase-1 in 2009 to increase national electricity ratio by installing 35 coal power generations with total capacity 10,000 Mega Watt. However only 25 coal power generations had been installed by now, spread all over Indonesia. Coal necessities were supplied by 14 domestic coal mining companies. There are two factors that affect the price of coal i.e : distance and unit price. Distance between supplier and coal power generation would determine the
more » ... transportation cost while unit price would determine the price of procurement. The aim of this research is to minimize total price of coal by optimizing the distance and unit price (USD/Ton), allocating the coal necessities and scheduling the delivery. The optimization would be simulated using software What'sBest. By this simulation, 24 power plants were suggested to change their existing suppliers, while only one power plant was fitted. This change could reduce USD 27 Million/year for total price of coal. 460
doi:10.5220/0006250904600463 dblp:conf/icores/FelaniNR17 fatcat:zwdoifinyjc47avf2rohqjmmji