Capstone Researh

Bulk food recall decisions: Postponement and

preponement to sustain food business Postgraduate Program
Industrial & System Engineering Department
Institut Teknologi Sepuluh Nopember
Abdul Wakhid, Adyatma Taufiq, Dinda Tria, and Yuavil Lavayeki

Problem Statement Preponement model formulation

Bulk food without packaging is prone to contamination which requires the recall of the food. Oil
industry companies need to implement effective decisions to prevent huge losses and costs.

Postponement model formulation

Methodology
Literature Review

Results
A comparison of the total recall costs
Recall Cost Model
Numerical Example Real Case
2,000,000,000
200,000,000

1,500,000,000
150,000,000
Postponement Preponement
1,000,000,000 Formulation Model Formulation Model
100,000,000

500,000,000
50,000,000

0
0
Postponement Preponement
Postponement Preponement
Decisions Numerical Example &
Real Case Implementation
Quantitiy of affected product : Lower that Quantitiy of affected product : Higher that
storage capacity storage capacity
Transportation cost : Low Transportation cost : High

Postponement Preponement Decision

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