Available online at ScienceDirect. Procedia Computer Science 83 (2016 )

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1 Available online at ScienceDirect Procedia Computer Science 83 (2016 ) The 6th International Conference on Sustainable Energy Information Technology (SEIT 2016) Improving green supply chain management in furniture industry through Internet based Geographical Information System for connecting the producer of wood waste with buyer Aries Susanty*,a, Diana Puspita Sari b, Wiwik Budiawan c, Sriyanto d, Hadi Kurniawan e a,b,c,d,e Department of Industrial Engineering, Diponegoro University, Tembalang, Semarang Abstract Although there were stated in theory, in practice, there are some factors that limiting the recycling practices in the furniture industry. These include the geographical location of the waste resources which is restricting the integration of the companies that generate the waste and those that ultimately use it. Based on this condition, the purpose of this study is to develop the application internet based Geographical Information Systems (or internet GIS) as a decision support system in analyzing geospatial data for wood waste collection and transportation in the furniture industry. This application is aimed at encouraging the implementation of green supply chain management (GSCM) practice in the furniture industry through making the process of collecting and transporting the wood waste for recycling process easier. This study has used Software Development Life Cycle (SDLC) process as a tool for designing the proposed application of internet GIS. There were several Small and Medium Enterprises (SMEs) in the furniture industry and collector of wood waste in Jepara and Surakarta district attached in the proposed application as a preliminary of object for the application. This study resulted that, as a decision support system, the implementation of internet of GIS by the SMEs in the furniture industry and collector of wood waste allowing them to describe the geographical location of each party and then, based on the certain criteria, the system will rank the recommended SMEs as the producer of wood waste based on the minimum cost of collecting and transporting the wood waste from each of SMEs The Authors. Published by by Elsevier B.V. B.V. This is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of the Conference Program Chairs. Peer-review under responsibility of the Conference Program Chairs Keywords: green supply chain management; internet GIS; SMEs furniture; wood waste collector; Jepara; Surakarta * Corresponding author. Tel.: ; fax: address: ariessusanty@gmail.com The Authors. Published by Elsevier B.V. This is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of the Conference Program Chairs doi: /j.procs

2 Aries Susanty et al. / Procedia Computer Science 83 ( 2016 ) Introduction According to O Laoire and Welford, Small and Medium Enterprises (SMEs) have an important role in the global economy. Although their contribution varies from country to country, they globally constitute 70% of domestic Gross National Product (GNP) 1. In Indonesia, the portion of the contribution of SMEs to the domestic GNP is about 57.94% and it increased to 59.08% (or equal to USD trillion) in One of the important sector for SMEs in Indonesia is furniture industry. About 90% percent of the furniture industry in Indonesia is SMEs 2. According to Global Business Guide Indonesia, in 2013, the total value of Indonesian furniture and related products exports reached $1.8 billion USD from $1.4 billion USD in 2012, with the main recipient markets being Western Europe, USA, Japan, China, Malaysia and Australia (Ministry of Trade). Despite their contribution to the GNP and value of export, relative to large enterprises, SMEs are often have a weak economic status and limited environmental awareness. SMEs often pollutes the environment during their activities, but they didn t aware of their impact 3. Redmond et al determined that 39% of small businesses (with 1 20 employees) believe they have no effect on the environment 4. Pollution is resulted from the negative impact of the type and amount of waste produced and the recycling methods adopted by these businesses during operation 3,5. This condition also happens in the furniture industry. As part of the forest-products industry, this industry uses wood as a raw material. A portion of wood as the raw material becomes waste during the production process. Wood waste refers to materials that are unsuitable for the production of wood products. These wood wastes can be classified into three types: bark, coarse, and fine waste 6. Wood waste disposal to the environment without treated will cause pollution and can cause many damages both economic and environmental. So, treating this wood waste is necessary to overcome this problem. In this case, the furniture industry can reuse and recycle the wood waste to be utilized by other industries. Recycling of all wood from furniture industry can be seen as part of implementation of green supply chain management (GCSM) in this industry. GSCM can be defined as an approach to improve performance of the process and products according to the requirement of the environmental regulation 7. Although there were stated in theory, in practice, there are some factors that limiting the recycling practices in the furniture industry. These include waste collection and transportation, the scale of the business, the industrial sector in which the company operates, the amount and type of waste produced, environmental regulations and the level of development within a particular country. The geographical location of the waste resources and the markets that could use them is limiting the development of a significant market for these wastes. Other reasons for the limited use of wood waste are the lack of integration of the companies that generate the waste and those that ultimately use it 8 and the long delays during waste collection, which can degrade the quality of the waste 9. Basically, the integration between the company that generate waste (in this case, SMEs furniture) with those uses it and long delays during waste collection can be solved by constructing an information system which can describe the geographical location of each party and make some analyzing according to the optimum rate of collection. Based on this condition, the purpose of this study is to develop the application internet based Geographical Information Systems (or internet GIS) as a decision support system in analyzing geospatial data for wood waste collection in the furniture industry. Those applications are expected to encourage the implementation of GSCM practice in the furniture industry through making the process of collecting wood waste for recycling process easier. From the point of view of the buyer (in this case, wood waste collector), the application of internet GIS will help to identify the nearest producer of a specific wood waste material in a particular geographic area, so the buyer can get the shortest route to collect the waste wood and the minimum cost of pick up. Then, from the point of view of producer of wood waste (in this case SMEs of furniture), the application of internet GIS will help them to communicate the availability of wood waste to those uses it (collector of waste wood), so it will reduce delays during waste collection. The implementation of internet GIS will provide interactive mapping and spatial analysis capabilities for enhancing SMEs furniture and waste wood collector in decision making processes. Also, the capabilities of internet GIS will make it possible to answer spatial queries using intelligent maps, with integrated images and text and showing the location of SMEs and wood waste collector. The rest of the paper is organized as follows. Section two will be consist of the relevant literature about GSCM and recycle wood waste and the role of GIS in the field of supply chain management research. This section is followed by the explanation about methods of research which includes study region and the steps of application development. Then, the result of analyzing the requirements of the furniture industry on GIS and the result of

3 736 Aries Susanty et al. / Procedia Computer Science 83 ( 2016 ) application development will be presented in the next section, after the explanation about methods of research. Finally, the last section of this paper will be consist of a summary of the findings and an explanation about the limitation of the study. 2. Literature Review The literature review will be consist of the explanation about green supply chain management and recycle wood waste and the role of geographical information system in the field of supply chain management research Green Supply Chain Management and Recycle Wood Waste Green Supply Chain Management (GSCM) is derived from both Supply Chain Management literature and Environmental Management literature. Srivastava postulates that with the addition of a green component, the influences and relationships between Supply Chain Management and the natural environment are intertwined 10. There were several definitions of green supply chain and all of that definition has revolved around the concept of improving environmental performance along the chain 10,11. In general, according to Zhu and Sarkis, the definition of GSCM has ranged from green purchasing to integrate supply chains flowing from the supplier, to manufacturer, to the customer and reverse logistics, which is closing the loop as defined by supply chain management literature 11. The statement stated by Zhu and Sarkis describes the component of GSCM practice. In detail, according to Hervani et al, a component of GSCM practice consists of green purchasing, green manufacturing/ materials management, green distribution/marketing and reverse logistics 12. Recycling wood waste in furniture industry belongs to green manufacturing practices. In this case, wood waste will be recycled into the other products. One way to recycle wood waste is splitting them into smaller wood elements like chips, and to produce wood based panels by adhesion, lamination, and composite formation. For more use of wood based panels from waste in houses, it will be necessary to improve the efficiency of the conventional processes for producing wood elements such as hammer milling, shaving, etc., and to improve the quality of wood elements, since they are closely related to the properties of wood based panels such as fiberboard, particleboard, and oriented strand board Geographical Information System and Supply Chain Management Research Geographic Information System (GIS) is a kind of super map, computer software that links geographic information (where things are) with descriptive information (what things are like) 14. Unlike a flat paper map, where what you see is what you get, a GIS can have many layers of information underneath its surface. Several researchers used GIS application to enhance the process in the supply chain management. GIS applications show significant promise in optimizing supply chain processes, in that this advanced spatial technologies open new doors for supply chain managers to efficiently plan, track, and make real-time changes to logistics processes. GIS can be used to identify optimal locations for retail stores, distribution centers, and manufacturing plants 15. One of the most common examples of GIS applications in supply chain management is route analysis and service scheduling 16. Today, commonly used web-based systems, e.g., Google Earth and MapQuest, provide user-friendly routing solutions. With two address inputs, users obtain detailed routing instructions, travel distances, and estimated drive times. Furthermore, users utilize map functions to manipulate detailed maps or aerial imagery of the route 17. Another example of using GIS in the supply chain management can be seen from research conducted by Vlachopoulou et al 18, Li et al 19, and Kumar et al 20. Vlachopoulou et al used GIS to support logistics and marketing managers to evaluate placement options for warehouse stores, based on costs (transport, labor, utilities, etc.), and on customers and competitor demographics 18. Li et al integrated GIS with the supply chain for construction materials and suppliers. Specifically, Li, et al. developed an internet based GIS for an e-commerce application to assist in the search for materials information on specific geographic regions of China 19. Kumar et al used GIS to enhance the efficiency of supply chain in dairying. In this case, GIS is used to identify where the potential customers are located, study competitor locations, and analyze opportunities for new areas 20.

4 Aries Susanty et al. / Procedia Computer Science 83 ( 2016 ) Method of Research The literature review will be consist of the explanation about study region and the steps of application development 3.1. Study Region This study was conducted in Jepara and Surakarta district, Central Java Province. There were several SMEs in the furniture industry as a producer of wood waste and several wood waste collectors in Jepara and Surakarta attached as a preliminary object of GIS application. Jepara and Surakarta district chosen as the region of study because those regions are a popular district with rapid growth in the furniture industry and until recently, they are still actively involved in export and trading activities. In 2011, at least 11,981 business units of workshops, showrooms and warehouses of furniture industries exist in the Jepara district. The furniture industry, which processes 0.9 million m3 wood per year, contributes about 26% of Jepara s economy 21. Besides Jepara, Surakarta is also one of the popular district with rapid growth in the furniture industry. According to ASMINDO (Indonesian Furniture Industry and Handicraft Association), there are 216 exporters of furniture industry located in Surakarta. Total employees in furniture manufacturing in Surakarta are around 42,000 people. Jepara district sprawls over an area of 1.004,13 km2, which comprises 16 sub districts, 183 villages and 11 kelurahan. The Java Sea lies to the north and west of the district, and it borders Demak in the south and the districts of Pati and Kudus in the east. More than 95% of Jepara s administrative area are on the island of Java, with the rest scattered over the offshore islands of Karimun Jawa 22. Surakarta district sprawls over an area km2, which comprises 5 sub districts and 51 districts. Karanganyar and Boyolali lie to the east and west of the district, and Sukoharjo to the south of the district. On the eastern side of Surakarta lies Begawan Solo River Application Development The application system should be developed before a GIS. In this study, Software Development Life Cycle (SDLC) process is used for the development an application of internet based-gis. SDLC process is divided into five phases, i.e. Requirement Analysis, Design, Coding, Testing, and Installation and Maintenance 23. Requirement analysis is the first phase of the SDLC. The emphasis of this phase is an identifying what is needed from the system. The second phase is design. The goal of the design phase is to transform the requirement specification into the structure. The third phase is coding. This phase is converting software design into code by using some programming language. It is the logical phase of the SDLC process. The fourth phase is testing. Effective testing will contribute to the delivery of high quality software products, more satisfied users, lower maintenance costs, and more accurate and reliable results. The last phase of SDLC process is installation and maintenance. This phase starts after the delivery of the product to the client. If any error occurred or modification needed, it is implemented in this phase 23. In this study, the last phase of SDLC process has not been executed because the application has not been submitted to the client. 4. Result 4.1. Requirements Analysis the Need of Furniture Industry on the Application In this study, the problem is related to the collection and transportation of wood waste. Specifically, the problem related to the availability of the spatial information which can be used to integrate the producer that generate the wood waste and those that ultimately use it. In this case, internet GIS which facilitated by Google Maps can play a key role in to solve this problem by providing the point location of each producer and collector of wood waste and the other relevant information needed to pick up, so the wood waste can be collected and transported with minimum cost. There were some relevant information and database needed by internet GIS to solve the problem, among others information about each SMEs furniture as the producer of wood waste (name of SME, location, phone number), information about wood waste (amount and price of wood waste), information about collector of wood waste (name

5 738 Aries Susanty et al. / Procedia Computer Science 83 ( 2016 ) of collector, location, phone number), delivery costs in accordance with the type of transport that will be used and the distance of particular materials to be transported Procedures for the collection and transportation wood waste based on the minimum delivery costs can be explained as follows: (i) the producer of wood waste (SMEs furniture) put the information about amount and price of wood waste on the system; (ii) the collector of wood waste put the information about their address on the system; (ii) the collector of wood waste will be see some of SMEs furniture as producer of wood waste on the map of Jepara and Surakarta district and also will be ask to fill the weight of importance of each criteria for choosing the best producer (there is three criteria using for selecting the wood waste producer, i.e. amount of wood waste, price, distance), amount of wood waste needed and their price; (iv) the system will display information about ranking of producer of wood waste based on the minimum delivery costs and also accordance with the predefined criteria Design and Coding the Application This section will contain the explanation about the architectures of proposed information systems, database design and interface design. Architectures of proposed information system Architecture of information systems is described in the form of Context Diagram, Data Flow Diagram (DFD), and Entity Relationship Diagram (ERD). The Context Diagram that shows the system boundaries, external entities that interact with the system and the major information flows between the entities and the system can be seen in Fig.1. Thus, the context diagram is further decomposed into the lower-level diagram which is level 1 Data Flow Diagram (DFD). In fact, each process on the level 0 data flow diagram can be decomposed into more explicit data flow diagram, called level 2 diagram and can be further decomposed into next lower-level diagram when it is needed. In detail, DFD level 1 and level 2 can be seen in the Fig. 2 and Fig.3. DFD level 1 describes the processes contained in the GIS for selecting SMEs furniture as wood waste producer, namely account management, waste information management, and selecting and ranking producers. Thus, each process in the account management, waste information management, and selecting and ranking producers will be described in detail in DFD level 2. Waste and Producer Information ADMINISTRATOR Data of Administrator Producers Ranking PRODUCERS Verification Status Data of Consumers Data of Producers 1.1 Account Management 1 Users Account Criteria Priority Waste Type Data of Consumers 1 GIS AS DSS FOR SELECTING WOOD WASTE PRODUCER Data of Producers Verification Status PRODUCERS Consumers Waste and Producers Information Waste Information Management USERS Waste Producers and Consumers Information Data of Administrator ADMINISTRATOR USERS Waste Producers and Consumers Information 3 Producers Waste Type Criteria Priority Producers Ranking 1.3 Selecting and Ranking Producers Fig. 1. Context Diagram of the proposed information systems Fig. 2. Data Flow Diagram level 1 of the proposed information system PRODUCERS Data of Consumers Data of Producers Registration 1 Users Account 2 Consumers PRODUCERS Waste Prices Waste Stocks Available Management Data of Waste 3 Producers ADMINISTRATOR Verification Status Data of Administrator Users Verification 3 Producers Waste and Producers Information Waste Producers and USERS Consumers Information Update Data of Waste Fig. 3. Data Flow Diagram level 2 account management Fig. 4. Data Flow Diagram level 2 waste information management

6 Aries Susanty et al. / Procedia Computer Science 83 ( 2016 ) Waste Type Criteria Priority Ordering Priority 2 Consumers Producers Ranking Ranking Weights 3 Producers Fig. 5. Data Flow Diagram level 2 selecting and ranking producers of wood waste Database design The data and the rules represented and used in the database are described in form of Entity Relationship Diagram (ERD). In detail, the ERD of the proposed information systems can be seen in Fig. 6. Fig. 6. Entity Relationship Diagram for proposed information system Interface design The user interface possibly the most important component of a computer-based system or product. The user s ability to tap the computational power of an application may be severely hindered, if the interface is poorly. Interface design focuses on three areas of concern: (i) the design of interfaces between software components; (ii) the design of interfaces between the software and other nonhuman producers and consumers of information (i.e., other external entities); and (iii) the design of the interface between a human (i.e., the user) and the computer 24. Some user interface belongs to the internet GIS for producer of wood waste selection in furniture industry can be seen in Fig 7 a, b Fig. 7. (a) Interface that shows the location of wood waste collector on the map (b) Interface that shows the recommended producer of wood waste

7 740 Aries Susanty et al. / Procedia Computer Science 83 ( 2016 ) Testing the Application There were two system testing conducted in this study. The first system testing aims to verify the distance indicated by the internet GIS for selected the producer of wood waste with the actual condition. The second system testing aims to verify the ranking of wood waste producer resulted from data processing by the internet GIS with ranking of wood waste producer resulted from data processing by manual calculation. The first system testing was carried out by comparing internet GIS measuring coordinated point with Ndrive Navigation Systems, SA receiver coordinates over sample of 5 check points located in Jepara and Surakarta District. The result indicated that proposed internet GIS and Ndrive Navigation Systems can display the same position coordinates over the sample of 5 check point and have slight differences in the distance calculation due to rounding decimal places. Thus, data about the location of 24 producers of wood waste in Jepara and the amount and price of wood waste resulted by each producer was used for the second system testing. As the price criteria have the highest priority, followed by distance and the amount of wood waste, the result of ranking of producer of wood waste from manual calculation was the same as the result calculation from the proposed internet GIS. 5. Conclusion Development of an internet GIS for wood waste producer selection in the furniture industry was presented in this paper. In this case, internet GIS is a powerful tool to encourage the implementation of GSCM practice in the furniture industry through making the process of collecting wood waste for recycling process easier. The spatial modelling offered by internet GIS is directly applicable to understanding the location of each producer of wood waste (in this case, SMEs in the furniture industry) and those who use it, and its relationship to cost of collection and transportation of wood waste. From the point of view of the buyer (in this case, wood waste collector), the application of internet GIS will help to identify the nearest producer of a specific wood waste material in a particular geographic area, so the buyer can get the shortest route to collect the waste wood and the minimum cost of pick up. Thus, from the point of view of producer of wood waste (in this case SMEs of furniture), the application of internet GIS will help them to communicate the availability of wood waste to those uses it (collector of waste wood), so it will reduce delays during waste collection. The major limitation of study in the design of the application of internet GIS for wood waste producer selection in the furniture industry is this study didn't consider the road and traffic condition. So, further research should include the condition of road and traffic as some factors which have significant impact to lead time of pick up the wood waste, which in turn affect the cost of pick up the wood waste. Although one of the purpose of this application design is to encourage the implementation of GSCM in the furniture industry, this application didn t include the calculation of emission from the process of collection and transportation of wood waste. The further research may consider to include the calculation of emission reduced due to more efficiency in the process of collecting and transporting the wood waste. In the future, it is also necessary to make sure that data and information used in the system is qualified and reliable and the producer and collector of wood waste have good skills and experience in using the application. It is because the quality and reliability of the data and the information and also the skill and experiences of the user will be influencing the effectiveness of application used by the furniture industry. In this case, the government as a regulator, can improve the skill and experiences of the producer and collector of wood waste in using the application of internet GIS through conduct a training about using the software and providing some facilities such as computers and the internet which can be used by them to run the software. Acknowledgements This work has been funded by the Ministry of Research, Technology, and Higher Education through grand for Strategis Nasional. The authors wish to acknowledge to Head of Research and Community Service for giving the authors the opportunity to conduct this research and attend the 6th International Conference on Sustainable Energy Information Technology (SEIT 2016). The authors also wish to acknowledge our gratitude and appreciation to all the partners in Strategis Nasional for their contribution during the development of various ideas and concepts presented in this paper.

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