Optimizing Supply Chain Joint Total Cost (JTC) in The Batik Industry by Considering Workers' Mental Health

Abstract

Batik is one of the creative economic sectors that is growing rapidly and involves a large workforce across industrial centers and SMEs in Indonesia. Along with the growth of the batik industry, the demand for batik products has also increased significantly, creating a challenge in meeting this demand while managing the workload of each worker. Managing this workload is crucial, as excessive workload can lead to mental health issues among workers. Preliminary studies indicate that six workers are potentially experiencing mental health problems. Logistic Regression equation used to predict the mental health issues among workers. This study aims to address the challenge by analyzing the supply chain to fulfill demand while simultaneously considering the condition of the workers. In order to optimize the overall supply chain system, the optimization must consider the Joint Total Cost (JTC) between all of the chain. But on the other hand, the batik industry also needs to consider the workers’ condition. The optimization results using the Solver function in Microsoft Excel indicate that the total cost was successfully reduced from IDR 2,055,708,000 to IDR 1,325,152,000. This reflects a cost reduction of IDR 730,556,000 or an improvement of 35.53%, demonstrating the effectiveness of the optimization in minimizing the joint total cost across the entire supply chain. Furthermore, by reallocating the workload, the prediction result of the number of workers experiencing mental health issues decreased from 6 to 3 workers, indicating a positive impact of workload distribution on employee well-being.