MEASUREMENT OF SUPPLY CHAIN PERFORMANCE USING DATA ENVELOPMENT ANALYSIS (DEA) METHOD IN THE DISTRICT AND CITY OF BOGOR.

This study aims to measure the performance of the internal supply chain in Small and Medium Enterprises (SMEs) of footwear industry with the Data Envelopment Analysis approach. The object of research in SMEs used six inputs and three outputs as indicators of supply chain performance. The inputs used were order fulfillment time, order fulfillment cycle, supply chain flexibility, total supply chain costs, cash to cash cycle time, and daily inventory. The output used, were delivery performance, order fulfillment and compliance with standards. This research had 21 Decision Making Units (DMU). The efficiency results obtained from the twenty-first was the average efficiency value of 0.721. There were five SMEs that already have an efficiency value of 1 which showed the highest efficiency, namely SMEs numbers 11, 14, 15 17 and 19. Those SMEs that had the highest fairly short footwear

This study aims to measure the performance of the internal supply chain in Small and Medium Enterprises (SMEs) of footwear industry with the Data Envelopment Analysis (DEA) approach. The object of research in SMEs used six inputs and three outputs as indicators of supply chain performance. The inputs used were order fulfillment time, order fulfillment cycle, supply chain flexibility, total supply chain costs, cash to cash cycle time, and daily inventory. The output used, were delivery performance, order fulfillment and compliance with standards. This research had 21 Decision Making Units (DMU). The efficiency results obtained from the twenty-first was the average efficiency value of 0.721. There were five SMEs that already have an efficiency value of 1 which showed the highest efficiency, namely SMEs numbers 11, 14, 15 17 and 19. Those SMEs that had the highest efficiency have advantages compared to other SMEs, such as having inventory, chain costs low supply and fairly short footwear production cycle.

…………………………………………………………………………………………………….... Introduction:-
Indonesia's footwear is an important component of the country's economy which is able to contribute 3.1% of total merchandise exports. The value of Indonesia's footwear exports in 2016 reached 4.6 billion US dollars, ranking sixth largest in the world. The average growth of footwear exports has been 11.2% in the past decade (The Conference Board of Canada, 2018). Indonesia's footwear industry has the advantage of being able to absorb a lot of labor so that it will reduce the unemployment rate in Indonesia. The weakness of the Indonesian footwear industry is the high level of dependence on imports of raw materials, supporting materials and components especially for export destination products due to the limited ability of the domestic supplier industry, in addition to the large number of imported footwear products on the market at low prices distorting the national footwear industry market. The still limited ability of human resources in mastering production and design technology is also one of the weaknesses, so it is slow in anticipating the development of market needs (Yunika, 2017).
Measurement of supply chain performance as a whole involves all components of the supply chain members from suppliers to consumers. The existing supply chain performance measurement model applied in the field refers to supply chain activities within an organization that generally cover procurement activities, production planning, 223 production, fulfillment of customer orders and returns (Pujawan 2005). Traditional performance measures such as through profits are no longer used, because profit measures tend to lead to the performance of individual members of the supply chain. The most integrated performance measures that best describe the performance of the supply chain.
Footwear is made in two business scales, namely Small and Medium Enterprises (SMEs). There are industries that produce their own footwear and there are also those who work with SMEs or craftsmen in producing footwear. Industries that work closely with artisans in producing footwear will provide the materials needed to produce footwear. The most significant difference from industry and craftsmen is the use of machines in producing footwear, so that footwear products produced by the industry have better durability. In addition, the materials used by industry also have better quality compared to craftsmen who will affect the selling price of the resulting footwear products. The raw materials used by the footwear business, both craftsmen and industrie, come from domestic and foreign countries. For craftsmen, the materials used are obtained from shops around the production location or can also be obtained from factories in the Bekasi or Tangerang area. There are two locations to buy footwear produced, namely in shopping centers and footwear sales shops. Seller stores have fewer products and types of products than shopping centers. In addition, footwear sold in shopping centers are of better quality than products sold by footwear shops. The quality of footwear sold will affect the price of the product, so the price of footwear in a shopping center is more expensive when compared to footwear shops.
In general, SMEs craftsmen have full dependence on the giver of orders relating to aspects of capital, procurement of raw materials and marketing. While independent SMEs that have their own capital do not depend on the giver of the order. The skill of making footwear that most of the craftsmen have is obtained from generation to generation and from their experience, who had previously worked as laborers in footwear workshops so that they were very skilled in the techniques in making footwear.

Methods:-
The DEA model was built to measure supply chain efficiency with six inputs and three outputs. The selection of locations is done at the center of footwear SMEs in district and city of Bogor with the consideration that it is one of the centers of the footwear industry and has exported to several countries. Data collection in this study was carried out in January-August 2019. where, Ur is the weight for output r; Vi is the weight for input i; Yrj is the number of outputs DMU j; Xij is input I from DMU j; t is the amount of output; m is the number of inputs; n is the number of DMU; and 1 is a small positive number. The study sample was taken using purposive sampling technique, which uses one method of non-probability sampling (non-random or intentional sampling). Criteria for respondents to be examined are respondents who have knowledge and / or have experience about the footwear industry. The selected respondents represent companies or SMEs that are considered to have a deep understanding of the supply chain and the overall condition of the company. By brainstorming actors in SMEs, input and output variables are obtained that are used based on the SCOR indicator. Variable Input; 1. Lead time fulfillment is the time required by the industry to meet the needs of consumers expressed in units of days. 2. The order fulfillment cycle is the time required by the industry in one order cycle, expressed in units of days. 3. Supply chain flexibility is the time required to respond to the supply chain if there are unexpected orders either increasing or decreasing orders without being subject to penalty fees, expressed in units of days. 4. The total cost of supply chain management is the total cost incurred by the industry in handling materials from suppliers to consumers, expressed in rupiah units. 5. Cash to cash cycle time is the velocity of industrial money from the payment of raw materials to suppliers, to the payment or repayment of products by consumers, which are stated in units of days. 6. Daily supply is the length of the supply that is sufficient to meet the needs if there is no further supply, which is stated in units of days.
Variable Output; 1. Delivery performance is the percentage of order delivery on time that is in accordance with the date of the customer's order and or the date that the customer wants, expressed in percent (%). 2. Fulfillment of orders is a percentage of the number of consumer requests that can be fulfilled without waiting, expressed in percent (%). 3. Standard conformance is the percentage of the number of consumer requests sent in accordance with the standard determined by the consumer, expressed in percent.

Result and Discussion:-
The performance measurement model for footwear SMEs is built based on consideration of internal supply chain performance, namely the performance of SMEs in district and city of Bogor. Variables or indicators used in measuring the performance of footwear supply chains are based on the SCOR (Supply Chain Operation Refference) working matrix, where SCOR includes reliability, responsiveness, flexibility, cost and assets (Marimin and Maghfiroh 2010). In Wong and Wong 2007, explained, level 1 consists of top-level metrics that cover four basic processes -plan, source, create, send, and expand in all parts of the manufacturing and shipping process. Level 2 consists of process categories and serves as a platform for companies to implement operations strategies. Level 3 covers the level of process elements and defines the company's ability to compete successfully in selected markets. This is also the level at which companies refine their operations strategy. Finally, level 4 is the implementation level, where certain supply chain management practices to adapt to changing business conditions are defined. DEA is used as a tool to analyze these variables with the aim of evaluating the efficiency of internal supply chains in footwear SMEs in district and city of Bogor.
Footwear SMEs work within a period of one week to fulfill any number of orders by increasing or reducing the workers they have. Workers at footwear SMEs usually do not have a fixed work association and are paid based on 225 the amount of footwear produced or a piece system. Footwear SMEs also work based on orders given, so they do not have daily inventory and cannot fulfill unexpected orders, except for 4 SMEs that have inventory. SMEs that have daily supplies are collectors who receive footwear from several workshops that work together. The availability of supplies will affect the flexibility of the supply chain owned. The more inventory, the supply chain flexibility or sudden order fulfillment more and more fulfilled. Supply chain costs are costs incurred to distribute the products produced. SMEs distributes its goods depending on the distance traveled. For marketing products that are still in the Bogor area, a motorcycle can carry 60 pairs of footwear. SMEs that have further marketing areas, usually use cars. For SMEs that do not have supply chain costs, it shows that the products produced are taken directly by consumers to the production site. Each SMEs also has a different cash to cash time depending on the consumer being served because it has a different payment system.   0  80  2  100  0  95  3  100  0  80  4  100  30  95  5  100  0  90  6  100  0  80  226   7  100  0  90  8  100  0  95  9  100  0  90  10  100  0  95  11  100  0  85  12  100  50  95  13  100  0  100  14  100  40  95  15  100  10  100  16  100  0  95  17  100  0

Conclusion:-
This study measure the efficiency of supply performance in small and medium footwear industries in the district and city of Bogor. There are still many of the DMUs that are measured as inefficient, due to high supply chain costs, the long cash to cash cycle time and lack of inventory. The contribution of this research is expected to provide useful insights in the use of DEA as a tool in measuring supply chain efficiency.