Simulation of supplier-manufacturer relationship model for securing availability of teak log in furniture industry with sustainability consideration

Sustainability consideration is very important in decision making related to furniture industry due to its raw material derived fromforestst. Forest has important role for people because it gives benefit in economic, social, and environmental aspects. This paper focuses on developing a simulation model for the furniture industry, especially in supplier-manufacturer relationship model for securing availability of teak log with sustainability consideration. The simulation model is used to overcome the uncertainty and the dynamism of real systems and to generate alternative solutions for helping teak log supplier. A supplier has to evaluate and analyze some alternative decisions related to harvest and/or conserve the teak forest. The decision making become complex, because it´s related to dynamic forest age classes, dynamic demand, the growth of tree that has natural characteristics, and the uncertainty of illegal logging. The result shows that simulation can help decision maker to increase supplier´s profit by considering sustainability.