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Multi Criteria Decision Making Analysis of Supply Chain Alternatives for Coal Mining Concession at Central Kalimantan Case Study: PT Hamparan Mulya

Panjaitan, Franklyn Berris and Sunitiyoso, Yos (2021) Multi Criteria Decision Making Analysis of Supply Chain Alternatives for Coal Mining Concession at Central Kalimantan Case Study: PT Hamparan Mulya. In: The 3rd International Conference on Business and Banking Innovations, 6 & 7 March 2021, Surabaya.

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Abstract

Coal is a commodity which its selling price is influenced by market supply-demand. The selling price of coal tends to experience the significant fluctuations. During 2014 to 2016, a lot of coal mining companies were unable to continue their operation because of the coal low selling prices, only 20% of coal companies from 3000 companies were able to maintain their operation at that time. With the fluctuation of coal index price, coal mining companies must be able to perform their operations effectively and efficiently in order to survive and obtain good profit margin. Coal mining companies who have their concessions located on Central Kalimantan have another challenge beside the condition of the price index which mostly affected by natural condition, for this case study specifically for PT Hamparan Mulya mining concession, one of the coal mining concession located at Central Kalimantan. One of the biggest challenges for the company is its delivery route of barge. Every barge must deliver the coal from Barito River which has peculiarity on its water level. Beside the natural condition, other challenges are from the characteristics of coal which might experience the combustion that requires coal handling, and higher logistics cost. These challenges are the reasons of PT Hamparan Mulya to find the best supply chain of coal delivery solution to improve the sales and performance of the company. This research aims to determine the alternative coal supply chain for mining concessions in the Central Kalimantan, by using one of the Multi Criteria Decision Making (MCDM) methods which is Analytical Hierarchy Process (AHP) that divided into 4 Criteria and 10 Sub Criteria. The criteria used are Quality, Cost, Delivery and Barge Availability and 10 Sub-Criteria used are Coal Sizing, Quality Drop, Coal Combustion for Quality Criteria; Margin, Logistic Cost, Premium Sales Price for Cost Criteria; Volume, Leadtime, Continuity for Delivery Criteria and Barge Availability for Barge Availability Criteria. Possible alternative solutions are through the Salat Baru intermediate stockpile (ISP), ISP Indonesia Bulk Terminal (ISP IBT), Cargo Transfer and the current one through Taboneo. From the results of AHP analysis, it may conclude that the best coal supply channel is through intermediate stockpile (ISP) Indonesia Bulk Terminal. Keywords: Coal Supply Chain, Multi Criteria Decision Making, AHP

Item Type: Conference or Workshop Item (Paper)
Subjects: 600 - TECHNOLOGY > 658 - GENERAL MANAGEMENT > 658.562 - QUALITY CONTROL
Divisions: ICOBBI (International Conference of Business and Banking Innovations)
Depositing User: Perpustakaan Universitas Hayam Wuruk Perbanas Surabaya
Date Deposited: 10 Aug 2021 20:44
Last Modified: 10 Aug 2021 20:44
URI: http://eprints.perbanas.ac.id/id/eprint/6405

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