Designing a system dynamics model for optimizing shrimp raw material supply in shrimp crackers production

Department of Industrial Engineering, Faculty of Engineering, Trunojoyo University, Bangkalan, Indonesia

^* Corresponding author: ernaning.widiaswanti@trunojoyo.ac.id

Abstract

Shrimp is a key raw material in shrimp crackers production. The competitive snack food industry leads to fluctuating demand for shrimp crackers, impacting the supply chain. Demand uncertainty often causes mismatches between the supply of shrimp raw materials and actual needs. Excess raw materials can lead to spoilage due to prolonged storage. The method used to design the raw material procurement model is a dynamic system with the consideration that the model is non-linear and dynamic. This study aims to develop a system dynamics model for shrimp raw material procurement to optimize stock management and reduce spoilage from excessive storage. The system dynamics model determined optimal procurement quantities, with an R value of 60 kg and a Q value of 360 kg, resulting in a reduced storage time of one day. The results of this research can contribute to planning the shrimp raw material supply system for shrimp cracker SMEs.