scholarly journals Multi-item inventory policy with time-dependent pricing and rework cost

2021 ◽  
Vol 2 (2) ◽  
pp. 99
Author(s):  
Laila Nafisah ◽  
Nabilla Clara Devi Maharani ◽  
Yuli Dwi Astanti ◽  
Muhammad Shodiq Abdul Khannan
Keyword(s):  
Broiler Chickens ◽  
Optimal Number ◽  
Model Solution ◽  
Time Dependent ◽  
Optimization Approach ◽  
Market Demand ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
The Right

The price of broiler chickens at the consumer level varies daily. The price can be very low or otherwise. The price has resulted from the imbalance between the availability of chicken from suppliers and the market demand. As a result, demand will also fluctuate because it is influenced by consumer purchasing power. When the price of live chickens is low, the carcass company will usually buy in large quantities and expect to sell them at a higher price. The problem arises when the chicken overstock company will risk product damage due to product buildup in the refrigerated warehouse, so rework is necessary. In this paper, we will be developed a multi-item inventory model that considers material prices that vary to time, probabilistic demand, and rework costs. The aim is to determine the right policy for controlling frozen chicken products' inventory to minimize losses and total inventory costs.  This model can evaluate the best time to order broiler chickens, how much to order, how long the interval between orders, and the optimal number of orders, resulting in minimum total inventory cost per period.  The model solution is carried out with an optimization approach based on the parameters that affect the model. A numerical example is given at the end of this paper for model validation and illustrates the model solving algorithm.

scholarly journals COMPARISON OF EFFECTIVENESS INVENTORY CONTROL OF EOQ METHOD WITH COMPANY METHOD IN STEEL MATERIAL FABRICATION KRAKATAU POSCO

2019 ◽  
Vol 1 (2) ◽  
pp. 124-137
Author(s):  
Gunawan Adam ◽  
Tukhas Shilul Imaroh
Keyword(s):  
Inventory Control ◽  
Current Method ◽  
Raw Material ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Steel Material ◽  
Total Inventory ◽  
Material Fabrication ◽  
The Right ◽  
Comparison Of Effectiveness

PT. Krakatau Posco, is the largest steel manufacturing company in Southeast Asia that produces slabs and plates. This study aims to compare the effectiveness of controlling inventory of steel material fabrication workshop with the EOQ method and compared with the current method of the company in an effort to prevent the unavailability of such steel material fabrication. Inventory control using the EOQ method is expected to provide solutions for inventory control, and optimal ordering in order to obtain savings for inventory costs (Total Inventory Cost) at PT. Krakatau Posco. The method used is an interview and take the necessary data, then conduct an initial analysis using the ABC method to clarify the data that has been carried out at PT. Krakatau Posco, controls inventory using EOQ, determines safety stock, ROP and maximum inventory. By controlling the ordering and inventory also expected to provide significant savings for the company, by reducing inventory costs (Total Inventory Cost). The conclusion of this research is the EOQ method is the right method for controlling steel raw material fabrication to meet the production and repair processes at PT. Krakatau Posco and with this method the results of total inventory costs are also more efficient.

scholarly journals Analisis Pengendalian Persediaan Bahan Baku dengan Menerapkan Metode EOQ (Economic Order Quantity) pada PT. Jatisari Furniture Work

2021 ◽  
Vol 5 (1) ◽  
pp. 215
Author(s):  
Arga Sutrisna ◽  
Rizki Ginanjar ◽  
Suci Putri Lestari
Keyword(s):  
Production Costs ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Analysis Tool ◽  
Order Quantity ◽  
Inventory Cost ◽  
Total Cost ◽  
Inventory Costs ◽  
Total Inventory

This research objectives aims to determine and analyze raw material inventory control, the ideal raw material inventory that the company must provide and the efficiency of production costs carried out by Jatisri Furniture Work in Tasikmalaya for the period 2018.11 – 2020.02. The data collection method in this study is by direct observation at Jatisari Furniture Work in Tasikmalaya. Using techniques such us interviews, observation, and documentation. These observations were made in production reports for the years 2018 – 2020. The analysis tool was carried out using the Economic Order Quantity (EOQ) method such us safety stock, reorder point, and total inventory cost. The result of the Economic Order Quantity (EOQ) analysis show that the total cost of raw the material inventory that must be incurred by the company is greater than the total cost of inventories calculated according to the EOQ method. Companies should follow the calculations from the EOQ method so that they can save on raw material inventory costs, so that production costs are more efficient.

Economic Order Quantity Model for Minimizing Total Inventory Cost at PT PQR in Indonesia

2015 ◽  
Vol 21 (4) ◽  
pp. 1053-1056
Author(s):  
Bachtiar H. Simamora
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Traditional Practice ◽  
Inventory Costs ◽  
Eoq Model ◽  
Total Inventory

The purpose of this research is to see whether an Economic Order Quantity model can be used to reduce cost of inventory significantly in PT PQR, manufacturer of spring and sponge mattresses in Pekanbaru, Indonesia. The research was conducted on three main materials required in producing spring and sponge mattresses. Using Economic Order Quantity (EOQ) model to analyze historical demand on main materials, it is proven that with EOQ model the company can save by more than 45% from procuring and inventory costs of those materials. The research continues to forecast the sales demand to get the annual requirement of materials needed in 2014 and calculate the EOQ model again. The results show that, comparing with traditional practice done by company, EOQ model can reduce costs up to 118 million rupiah per year.

Review on Inventory Controlling of Building Materials Supply Chain from Uncertainty Demands in Civil Engineering

2012 ◽  
Vol 174-177 ◽  
pp. 3441-3443
Author(s):  
Bin Yang
Keyword(s):  
Supply Chain ◽  
Building Materials ◽  
Simulated Annealing Algorithm ◽  
Supply And Demand ◽  
Cost Models ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Annealing Algorithm ◽  
The Difference

Inventory control is a necessary strategy that enterprises use to offset the effect of uncertainties in manufacturing, supply and demand. Normally, probability distribution is used to analyze the uncertainty problems, however, this analysis can’t be completed with inadequate data, resulting in an increase in inventory costs. The paper establishes inventory cost models of single supply chain member under uncertainty demands and applies Simulated Annealing Algorithm to imitate the models in 52 weeks to seek for the optimal speaking for amount and anew speaking for point so that compares the difference of supply chain total inventory cost and the sufficing rate of order for goods between independently and collaborated controlling strategy in supply chain, and in order to provide the necessary theoretical supports for the enterprises to establish supply chain partnerships and possibly improve the supply chain capability of providing external integration.

Using of EOQ and EPQ Methods in Minimizing Inventory Cost of Crude Palm Oil

2020 ◽  
Vol 4 (1) ◽  
pp. 36
Author(s):  
Linda Kumala Sari ◽  
Sajaratud Dur ◽  
Ismail Husein
Keyword(s):  
Palm Oil ◽  
Crude Palm Oil ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Economic Production Quantity ◽  
Economic Production ◽  
Production Quantity ◽  
Total Inventory ◽  
The Difference ◽  
The Cost

<span lang="EN-US">Excess or lack of inventory that is too large is a problem that can trigger increased costs so that companies do not get the benefits they should. The purpose of this study is to minimize the cost of inventories of crude palm oil using the EOQ (Economic Order Quantity) method and EPQ (Economic Production Quantity) methods at PT. Perkebunan Nusantara IV (Persero) Medan. From the results it is known that economic orders according to the EOQ method in 2017 amounted to 2.741,222 tons and in 2018 amounted to 2.825,927 tons. The difference in total inventory costs generated using the EOQ method and company conditions in 2017 amounted to Rp71.605.439.976,17 and in 2018 amounting to Rp60.884.174.907,3. The optimal amount of production (EPQ) in 2017 and 2018 was 146.226,147 tons. The difference in total inventory costs generated using the EPQ method and the condition of the company in 2017 and 2018 amounted to Rp102.771.704.121,63.</span>

Inventory Control and Replenishment of Multi-Product Multi-Echelon Based on Time Cost Under JMI Environment

2013 ◽  
Vol 5 (2) ◽  
pp. 19-30
Author(s):  
Zhi Chen ◽  
Chao Ren ◽  
Ren-long Zhang ◽  
Mi-Yuan Shan
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Service Level ◽  
Control Model ◽  
Management Tool ◽  
Time Cost ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Total Inventory ◽  
Replenishment Strategy

Joint managed inventory is an advanced supply chain inventory management tool, which will effectively tackle the complicated problem between the inventory cost of supply chain and service level. The research on inventory model and its’ control under JMI environment is a hot issue at present. In this paper, the authors deeply discuss the question of the inventory time costs about the multi-product and multi-echelon control model and its’ replenishment strategy under JMI environment. With considering the foundation of JMI and time cost, the authors propose the multi-product multi-echelon inventory cost control model under time cost. Then formulate corresponding replenishment strategy. At last, through a numerical example, the authors discover that the multi-product multi-echelon joint inventory management based on time cost can effectively reduce the total inventory costs and improve the competitiveness of the entire supply chain.

scholarly journals Ordering Size Optimization of Raw Material to Minimize Inventory Costs using Wagner-Within Algorithm and Silver-Meal Methods

2021 ◽  
Vol 328 ◽  
pp. 05002
Author(s):  
Dira Ernawati ◽  
Sinta Dewi ◽  
Ni Ketut Sari ◽  
Kurniawan Budianto
Keyword(s):  
Control Method ◽  
Lot Sizing ◽  
Raw Materials ◽  
Cost Savings ◽  
Raw Material ◽  
Inventory Cost ◽  
Cost Overruns ◽  
Inventory Costs ◽  
Total Inventory ◽  
Abc Method

Inventory is one of the current assets that can be classified as company assets. But in reality, inventory often turns into an operational problem that can affect the company's overall performance. This problem occurs due to the incorrect determination of the amount of inventory. Both excess and shortage of inventory can lead to cost overruns. This study applies the Wagner Whitin Algorithm and the Silver-Meal method in the lot-sizing process and the ABC (Always Better Control) method in determining the classification of raw materials at PT. X. Using the ABC method, it is known that the ADC-12 Ingot item has a very significant effect to inventory. Inventory optimization using the Wagner Whitin Algorithm and the Silver-Meal method resulted in the optimal frequency of ordering ADC-12 Ingots is 9 times and the total inventory cost is 994,098,000 IDR as well as inventory cost savings of around 18,403,180 IDR or 1.8% of the cost of existing inventory.

scholarly journals PENGATURAN PERSEDIAAN BERAS DI PERUM BULOG DIVRE SULTENG DENGAN METODE ECONOMIC ORDER QUANTITY (EOQ)

2018 ◽  
Vol 15 (2) ◽  
pp. 220-237
Author(s):  
Nildawati Nildawati ◽  
R Ratianingsih ◽  
A Sahari
Keyword(s):  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Costs ◽  
Reorder Point ◽  
Rice Price ◽  
Efficiency Cost ◽  
Total Inventory ◽  
Central Sulawesi

Perum BULOG of Central Sulawesi Division is a national rice logistic company that its responsibility is to guarantee the sufficiency to meet the rice needs. Perum BULOG also responsible to keep rice price stability. One of the rice price component is the inventory costs that need to be managed. In this research the management is refered to the rice scheme demand of four storages, that are Olaya, Lawanga, Jaya Kencana Toili and Galang. This study uses EOQ (Economic Order Quantity) that consist of five priorities, that are determining the of economical order, determining the amount of safety stock, determining the maximum inventory quantities, determining the reorder point and determining total inventory cost. The results showed that the number of economical order storage of Olaya is 1.817.120,57 kg/message, Lawanga is 1.893.400,78 kg/message, Jaya Kencana Toili is 1.575.543,38 kg/messages and Galang is 1.578.742,75 kg/message. The total Inventory Security for Olaya is 32.371,28 kg, Lawanga is 41.020,07 kg, Jaya Kencana Toili is 30.630,61 kg, and Galang is 57.307,99kg. The maximum inventory for Olaya is 1.849.491,85 kg, Lawanga is 1.934.420,85 kg, Jaya Kencana Toili is 1.606.173,99 kg, and Galang is 1.636.050,74 kg. The reorder point is proposed when rice stock of Olaya reaches 323.664,52 kg, Lawanga reaches 357.282,87 kg, Jaya Kencana Toili reaches 249.620,29 kg and Galang reaches 277.188 kg. The total inventory cost that use Economic Order Quantity is Rp. 2.507.626,39 for Olaya, Rp. 2.612.893,07 for Lawanga, Rp.2.174.249 ,87 for Jaya Kencana Toili, and Rp 2.178.665,00 for Galang. The Efficiency cost of rice supplies BULOG Division is Rp.40.405,29 for Olaya, Rp. 719.256,02 for Lawanga, Rp. 51187.63 for Jaya Kencana Toili, and Rp. 153.528,73 for Galang. These result gives greatest efficiency at the cost of supplies of Perum BULOG Division Central Sulawesi for Lawanga 22% as much.

scholarly journals PENGENDALIAN PERSEDIAAN TEH DENGAN MEMPERTIMBANGKAN KENDALA BIAYA PERSEDIAAN DAN KAPASITAS GUDANG

Jurnal Tekno ◽  
2019 ◽  
Vol 16 (1) ◽  
pp. 47-57
Author(s):  
Olaviane Anaros Octavia Nainggolan ◽  
Theresia Sunarni
Keyword(s):  
Seasonal Pattern ◽  
Capacity Constraints ◽  
Agricultural Products ◽  
Inventory Cost ◽  
Lagrange Method ◽  
Total Cost ◽  
Sales Data ◽  
Inventory Costs ◽  
Total Inventory ◽  
A Company

Inventory control is an important issue which must be considered by every company. The occurrence of overstock or excess inventories led to an increase in inventory cost the same as if the stockout. PT Perkebunan Nusantara VII Distrik Banyuasin is a company engaged in agriculture and processing of agricultural products such as palm oil , tea and rubber. Products covered is controlling tea products in the warehouse because of the problems that often occur in tea products . Kinds of tea products discussed namely BOP, BOPF, PF, DUST, BP, BT, PF II, DUST II, BP II, BT II, DUST III, FANN II, DUST IV. PT Perkebunan Nusantara VII Distrik Banyuasin has re- ordering method is less precise so that the reorder point should be calculated. To determine the fluctuating demand in the next year with forecasting is carried WinQsb program based on the pattern of sales data. Pattern sales data for 33 months is a seasonal pattern . The total cost incurred by the company during this time with a reservation made is Rp 385 506 418 , - . Therefore , we need a method that can control the supply so as to meet the demand for timely and can reduce the total cost of inventory . The method used is Multi Item EOQ method that produces a total cost of inventory Rp 414 195 905 ,-. Because the total cost of inventory with EOQ method Multi Item is greater than the method used by the company that carried out the study with Lagrange method taking into account capacity constraints warehouse and inventory costs which resulted in a total cost of inventories Rp 257 524 800 ,- which is smaller than the methods of the company . With the Lagrange method can save a total inventory cost Rp 127 981 619 , - with a percentage of 33.2 % .

Inventory Planning with Method Q and Method P for Probabilistic Demand on Chrysanthemum Seeds at PT Transplants Indonesia

2019 ◽  
Vol 3 (01) ◽  
pp. 57
Author(s):  
Akhmad Sutoni ◽  
Dani Hamdan Taufik
Keyword(s):  
Inventory Model ◽  
Inventory Systems ◽  
Uncertain Demand ◽  
Q Method ◽  
Inventory Cost ◽  
Agricultural Cooperative ◽  
Total Inventory ◽  
The Right ◽  
Cooperative Association ◽  
A Company

Fluctuating and uncertain demand is a problem faced by manufacturing firms. The problem can be mitigated by the availability of inventory systems. This inventory serves to ensure the availability of appropriate resources in the right quantity and at the right time, so as to minimize the costs incurred. PT. Transplants Indonesia is a company engaged in the business of chrysanthemum flower in Indonesia. PT. Transplants Indonesia is a subsidiary of Okinawa Flower Agricultural Cooperative Association (OKF) in Okinawa, Japan. The purpose of this company establishment is to meet the demand of farmers who are members of the OKF. In the case of backorder, on Q method with probabilistic request the size of the lottery (Q) is always fixed for every time the order is made and the order is made if the amount of inventory has reached a certain level (r) called the reorder point. In method P with probabilistic order requests made according to a fixed interval of time (T) and the ordering does not exceed the maximum inventory limit (R). Total Inventory cost incurred by the company using the method used by the company amounted to Rp.74.995.360,84. The inventory model using the Q method generates a total inventory cost of Rp.70.253.291,46. Meanwhile, inventory model using P method resulted in total inventory cost of Rp.71.529.327,17. So economically, the selected inventory model is the inventory model with the Q method which has a lower total inventory cost value than using the P method.

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