Supply chain management is critical to business success and essential to reach

customer satisfaction. To achieve the most efficient supply chain, there are several parts
of supply chain management that should be identified and managed well, including
supply chain strategy and network design, supply chain service performance, supply
chain costs, supplier performance, and also inventory management. Those steps consist
of planning, production, and distribution.
After considering those factors, PT. Adi Samavin plant location will be located
on Jl. Ciffest, Cikupa, Tangerang, Banten 15710 (coordinates: -6.232244, 106.519857)
with the facilities of electrical, water, human resources and road access. Most of raw
materials that are used in the process will be supplied by supplier in Indonesia near
plant location. Only organo alcoxy silane that is imported from China. All of the raw
materials will be supplied more than once a week, only nano silver and organo alcoxy
silane will be supplied once three months. For making sure the raw materials supply,
there will be a keep about 30% of every distribution capacity.
The distribution of 125 boxes ShoeCozy product will be distributed to 3
distributors in Jakarta, Bogor, Depok, Tangerang and Bekasi, with 20 bottles/box.
Marketing strategy if ShoeCozy is promotion via printed media, website, social media.
Total capital investment of PT. Adi Samavin includes equipment, land and
building, supporting facilities, utilities installation cost, market research cost, licensing
cost, indirect cost and working capital investment is Rp 2,564,368,149.00-, will be fully
costed from bank with 9.75% interest. Operational cost is Rp 2,685,144,928 a year.
Therefore, by simple calculation, the minimum price for ShoeCozy product is
Rp. 23,697.91, PT Adi Samavin chooses selling price of this product will be Rp. 50,000
with marginal advantage of 111%. The assumption made about the number of products
sold per year: in the 1st year products sold is 60% of the company production, in second
year 70%, in third year 80%, and in fourth until tenth year product sold is 90% of
production capacity. WACC of chemical specialty product is 14.56%. With assumption
above, PT. Adi Samavin will use 14.65% as MARR value. This project has 66.5% rate
of investment in 10-year project and payback period 634 days or 1.74 years. it can be
concluded that this Shoes’ Smell Remover Product can get its payback in period less
than 4 years, which is classified as intermediate time that is proper to recover the cost
of investment. So, the production is acceptable. The breakeven point when the plant
has produced about 215,500 cans.
The value of MARR is 14.86%. If we compare both value, it can be concluded
that the IRR value is greater than MARR value (58.5% > 14.86%). Therefore, we can
also conclude that PT. Adi Samavin plant is a feasible and acceptable project because
it is considered as an interesting project and can give proper profit for the investor. This
project also could be considered profitable if it’s executed while if the NPV is less than
zero it means that project is not profitable to run. Also, if the NPV equals to zero, it
means that the project won’t result in any profit or loss. From the calculation with
Microsoft Excel, the NPV is obtained as Rp 6,758,518,962.07. Because the NPV is
greater than zero, based on NPV calculation it can be concluded that this project is
profitable.
Last but not least, sensitivity analysis also should be considered to determine
if this project is profitable or not. A sensitivity analysis is conducted to determine the
effect of percentage changes in pertinent variables on the profitability of the project.
Such an analysis indicates which variables are most susceptible to change and need
further study (Perry, 2007).
From the graphic (will be showed in chapter 3), it can be seen that the
influence of labor cost and raw material but it causes changes in NPV. The increasing
of product price causes the increase of NPV, whereas the increase of raw materials and
labor salary cost causes a decline of NPV. Influence of operating labors and raw
materials is not significant but it causes changes in IRR. The increase of product price
cause a bigger value of IRR while the increase of raw materials and labor cost causes
a decreasing IRR. Influence of labor cost and raw material cost is not that significant
but it causes changes in PBP. The product price causes the highest fluctuation at value
about 1-4 years change of payback period. Meanwhile, the fluctuation of raw material
and labor cost cause the fluctuation 2-3 years of payback period. The increasing of raw
material cost causes a rise of PBP while an increase of product price results in a decline
of PBP.
 Overall, this project has good feasibility and profitability because it has
competitive price benchmarked with competitor product and feasible to set high margin
price. Therefore, this project is still profitable even raw material and labor cost rising
15% and product price lowering 15%.
 CHAPTER 4
CONCLUSION
Based on the explanation in this assignment, the company can take some
conclusions such as below:
 PT. Adi Samavin plant location will be located on Jl. Ciffest, Cikupa, Tangerang,
Banten with the facilities of electrical, water, human resources and road access.
 There are several parts to achieve the most efficient supply chain, such as supply
chain strategy and network design, supply chain service performance, supply chain
costs, supplier performance, and also inventory management.
 All of the raw materials will be supplied more than once a week, only nano silver
and organo alcoxy silane will be supplied once three months.
 The distribution of 125 boxes ShoeCozy product will be distributed to 3
distributors in Jakarta, Bogor, Depok, Tangerang and Bekasi, with 20 bottles/box.
 Total capital investment of the company is Rp 2,564,368,149 and will be earned
from bank loan and the return will complete in 10 years.
 The company will be fully costed from bank with 9.75% interest.
 Operational cost of the company is Rp 2,685,144,928 a year.
 The minimum price for ShoeCozy product is Rp. 23,697.91, PT Adi Samavin
chooses selling price of this product will be Rp. 50,000 with marginal advantage
of 112%.
 The assumption made about the number of products sold per year: first year
products sold is 60%, second year 70%, third year 80%, and in fourth until tenth
year 90% of production capacity.
 WACC of chemical specialty product is 14.56%. This company will use 14.65%
as MARR value.
 The ROI of the plant is 66.5%, the payback period is less than 4 years.
 The NPV is obtained as Rp 6,758,518,962.07. It can be concluded that this project
is profitable.
 The increasing of product price causes the increase of NPV, whereas the increase
of raw materials and labor salary cost causes a decline of NPV.
 The increase of product price cause a bigger value of IRR while the increase of
raw materials and labor cost causes a decreasing IRR.
 This project has good feasibility and profitability because it has competitive price
benchmarked with competitor product and feasible to set high margin price. This
project can give proper profit for the investor.