Bambang Herry Purnomo, Elida Novita, Anis Setiawati, Puji Wahono, Hendra Andiananta Pradana, Mokhamad Fatoni Kurnianto, Rahmat Pramulya, Devi Maulida Rahmah, Adi Sutrisno, Afif Amiluddin
The small-scale downstream agroindustry of Argopuro robusta coffee often faces problems related to suboptimal production management. The Kahy-angan Robusta Coffee Processing Unit (called UPH) produces roasted and ground coffee and has the same problem, often being unable to meet market demand, having excess product and raw material inventory, and quite high production costs. The purpose of this study is to design a system dynamic model for production control that can guarantee the fulfillment of market demand for roasted and ground coffee, reduce excess inventory, and lower production costs. The research results show that until 2025, UPH is still unable to meet market demand (stockout occurs) of 66,25 kg (roasted coffee) and 57,04 kg (ground coffee), product stock volume of 24,6 tons, and total production costs of Rp. 1,34 billion. A policy scenario was developed to handle this unsatisfactory situation by regulating the production rate of roasted and ground coffee through variable settings for the amount of downstream product safety stock, ‘inventory adjustment time’, and ‘time to update demand’. The results of the model simulation show that monthly demand has been met without stockouts. There were savings in production costs of up to 14% and stock reductions for raw materials of 42%, roasted coffee of 14%, and ground coffee of 27,36%. The model has proven to be useful for inventory optimization and cost management. UPH can follow up by controlling the production rate according to the level of downstream product stock so that it can increase its competitiveness. © 2025, Editora UFLA. All rights reserved.
University of Jember, Faculty of Agroindustrial Technology, Study Program of Agroindutrial Technology, Jember, Indonesia; University of Jember, Faculty of Agroindustrial Technology, Study Program of Agriculture Industrial Technology, Jember, Indonesia; State University of Jakarta, Jakarta, Indonesia; Faculty of Economic, Study Program of Management, Jakarta, Indonesia; Sustainable Development Services Indonesia (Limited Liability Company, LLC), Jember, Indonesia; Jember State Polytechnic, Jember, Indonesia; Departement of Agriculture Technology, Study Program of Food Industrial Technology, Jember, Indonesia; Teuku Umar University, Aceh, Indonesia; Faculty of Agriculture, Study Program of Agriculture Science, Meulaboh, Indonesia; Padjadjaran University, Bandung, Indonesia; Faculty of Agriculture Industrial Technology, Study Program of Agriculture Industrial Technology, Bandung, Indonesia; Tarakan Borneo University, Tarakan, Indonesia; Faculty of Agriculture, Study Program of Agribusiness, Kota Tarakan, Indonesia; Mochammad Sroedji University, Jember, Indonesia; Faculty of Engineering, Study Program of Civil Engineering, Jember, Indonesia
Research at a Glance
Register to unlock
Topics & SDG Alignment
Register to unlock
Collaboration
Register to unlock
Author Profile (Selected)
Register to unlock
References Overview
Register to unlock
Journal & Source
Register to unlock
Metadata & Integrity
Register to unlock