Imported products continue to dominate the Indonesian market. According to
Badan Pusat Statistik (2024), the import value in January 2024 consisted of oil
imports of USD 2,698.3 million (14.59 percent) and non-oil imports of USD
15,796.2 million (85.41 percent). 32.21 percent of it was contributed by the value
of imported products from China, followed by imported products from Singapore,
which contributed up to USD 1,599.4 million (8.65 percent), and Japan with USD
1,082.3 million (5.85 percent). This imported product included wooden kitchenware
products. CV X has a regular production capacity of 8,000 to 10,000 Pieces of
products per month. Recently, demand from five retailers has ranged from 14,000
to 18,000 pieces of products per month for local demand, accompanied by
uncertain delivery dates. Therefore, in the current situation, the company has opted
for overtime and outsourcing production to a third party to address the production
capacity issue.
To determine the optimal solution for design and implementation in this research,
further discussions were held with stakeholders to select from previously identified
alternative solutions. The chosen solution is expected to effectively resolve raw
material delays, primarily caused by the dry-kiln chamber's insufficient capacity for
drying wood boards. A feasibility test was conducted to determine the viable
approach between two strategic alternatives: either to conduct investment in
adding three dry-kiln chambers, involving allocating IDR 60,000,000, or to
outsource to utilize a vendor for wood planks over six months, at a total cost of IDR
56,910,000. The evaluation of these alternatives was performed employing Present Value (PV), Net Present Value (NPV), and Internal Rate of Return (IRR) methodologies, with all calculations executed over a six-month analytical horizon.
This dry-kiln chamber addition effectively addresses stakeholder needs by boosting production capacity. It facilitates market expansion, counteracting anticipated lower demand from one buyer while also supporting increased orders from other buyers. The goal is to ensure timely order fulfillment and prevent lost sales due to wood drying delays