A Relationship Model between Supplier and Manufacturer for Securing Availability of Teak Log in Export Oriented Furniture Industry with Sustainability Considerations

Abstract—There are many export oriented furniture industry in Indonesia that face a problem related to the availability of teak log as raw materials. The furniture companies should buy teak log from Perum Perhutani (PP) as a company that has responsibility to manage teak forest in Indonesia. They also must prosecute the regulations related to ecological issues and labor rights. Beside as a supplier, PP also must conserve teak forest and concern a corporate social responsibility program. This study proposes a supplier–manufacturer model for securing availability of teak log with sustainability considerations. Three aspects i.e. economical, ecological, and social should be considered to sustain the relationship between Supplier and Manufacturer. A model is formulated as Goal Programming (GP) to get optimum solution for teak log procurement considering economical, ecological, and social aspect both of supplier and manufacturer. The results show that the proposed model can be used to determine the teak log quantity to maximize the sixth goals to be satisfied the sustainability considerations.