Improving primary service performance in a state electricity utility through inventory control and process redesign: a discrete event simulation study

Siti Hanifah Sadiah and Meditya Wasesa

International Journal of Business Performance and Supply Chain Modelling, 2026, vol. 16, issue 1, 58-70

Abstract: This study explores the causes of performance deviations, improvement initiatives, and regulatory alignment in electricity primary service delivery. Using a mixed-methods case study of an Indonesian electricity utility, it combines qualitative diagnostics and quantitative modelling. Root cause analysis, control charts, Pareto analysis, and problem trees identify material unavailability - driven by fragmented supply chain coordination - as the main driver of primary service performance deviations. To address this, the study proposes workflow improvements using business process model and notation and evaluates four inventory strategies via discrete event simulation analyses. The best-performing scenario, featuring real-time information sharing and empirically derived reorder points and order quantities, reduced primary service breaches from 21.2% to 3.4% and sustained alignment under a fivefold demand increase. Sensitivity analysis confirmed its robustness to demand and supply variability. The findings underscore the value of integrated supply chains, data-driven inventory control, and cross-functional planning, offering management a scalable solution to enhance primary service performance.

Keywords: material optimisation strategy; inventory control; q-model; electricity utilities; utilities sector supply chain; logistics; business process improvement; business process reengineering; discrete-event simulation; prescriptive analytics. (search for similar items in EconPapers)
Date: 2026
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