A Conceptual Model for Supply Chain Resilience in the Indonesian Automotive Industry

Abstract

The supply chain process involves many elements and becomes increasingly complex with the development of technology. The Indonesian automotive industry is one of the supply chain process with high complexity and high risk of disruption. Disruptions in the form of natural disasters and internal worker problems are one of the very raredisruption buthave a significant impact because of the probability to damage production facilities and stop the production process. These can disrupt the supply chain process of automotive industry and make it difficult to meet demand. The supply chain resilience approach is used to determine the ability of the Indonesian automotive industry supply chain to withstand disruptions. This research builds a conceptual model for supply chain resilience in the Indonesian automotive industry.This conceptual model is developed from literature review and other required resources, thenvalidated by experts. The conceptual model examines the relationship between variables involved in the Indonesian automotive industry supply chain, the resilience strategies used under disruption and supply chain cost needed. A conceptual model could be developed latter into a quantitative model at the continuous stage of system dynamics method to analyze the behavior system of the automotive supply chain resilience in Indonesia against disruption.