scholarly journals Overstock Improvement by Combining Forecasting, EOQ, and ROP

Jurnal PASTI ◽  
2021 ◽  
Vol 14 (3) ◽  
pp. 230
Author(s):  
Hasbullah Hasbullah ◽  
Yadi Santoso
Keyword(s):  
Copper Wire ◽  
Spare Parts ◽  
Inventory Level ◽  
Essential Factor ◽  
Average Amount ◽  
Primary Material ◽  
Optimum Cost

Optimum stock inventory level is an essential factor in inefficient production. Overstock is an obstacle to achieving optimum cost. The purpose of this paper is to provide solutions in overstock in the electronic spare parts industry by comparing the various approaches Forecasting, EOQ, ROP with DDMRP to get the best model to obtain the inventory level Optimally. The Reset is done on the material Copper wire 0, 14mm as the primary material, which is the most expensive material and widely used in production activities. The results of this study showed that the method of DDMRP could decrease the average amount of the supply of Copper wire 0, 14mm per month from 2779 kg to 1499 kg. 

scholarly journals Pengendalian Persediaan Untuk Mengurangi Biaya Total Persediaan Dengan Pendekatan Metode Periodic Review (R,s,S) Power Approximation Pada Suku Cadang Consumable (Studi Kasus : Job Pertamina Talisman Jambi Merang)

2017 ◽  
Vol 4 (1) ◽  
pp. 8
Author(s):  
Adhi Putra Mahardika ◽  
Muhammad Nashir Ardiansyah ◽  
Efrata Denny S. Yunus
Keyword(s):  
Service Level ◽  
Spare Parts ◽  
Gas Production ◽  
Inventory Level ◽  
Periodic Review ◽  
Inventory Cost ◽  
Turbine Engine ◽  
Total Cost ◽  
Gas Processing ◽  
Power Approximation

Spare parts is one of the production support components which plays an important role for the survival<br />of gas production in the gas processing facility owned by SKN JOB Pertamina Talisman Jambi Merang. The<br />high inventory level increased the high inventory cost for the industry which get the benefit from the efficiency<br />of processes and resources. This research involved consumable spare parts for Solar Turbine engine as much<br />as 25 SKUs with demand character patterned lumpy demand and Poisson distribution. The implementation<br />of policies using Periodic Review (R, s, S) with Power Approximation approach in the inventory system<br />capable to generate a lower total cost inventory by pressing the backorder volume, the booking volume and the<br />inventory levels in a balanced manner. Calculation of Periodic Review (R, s, S) with Power Approximation<br />approach resulted inventory parameter which was able to press the total cost of inventory at 8.54% lower and<br />increase the service level by 1.11%.

Materials and Spare Parts Management for Gas Pipelines

2004 ◽  
Author(s):  
Reinaldo Andrade
Keyword(s):  
End Users ◽  
Spare Parts ◽  
Inventory Level ◽  
Material Management ◽  
Standard Interval ◽  
Stock Investment ◽  
Spare Parts Management ◽  
Proposed Model ◽  
City Gates ◽  
Demand Profile

The challenge for materials and spare parts management is to keep an economical inventory level and assure reliability to end-users. Another challenge is to have end users committed to the management model and procedures. The usual models call for re-order points and statistics analyses that do not fit the normal demand profile of pipelines. The proposed model works in committees by equipments or installations (as compressor stations, city-gates, etc.). The committee defines the necessary level of reliability for each material or component, estimated demand, normalized specification, etc. The Stock Base model supplies the statistical support for defining the quantity to maintain during the leading time plus a standard interval between semiannual or annual analyses. The model combines the most important concepts practiced by material management: Pareto’s Principle to indicate the economical standpoint to be considered in the analyses, statistical concepts to indicate the level of reliability required (accepted interval between two consecutive non-stock situation), traditional methods of material management (as the replenishment stock level) and the most important: the end users recommendation. The main results of this model are: low inventory levels, non-repetition of items in stock, different treatment for classes A, B and C items, combination of economical and operational importance resulting in reliability and stock investment reduction.

A Risk Based Methodology for Spare Parts Inventory Optimisation

2008 ◽  
Author(s):  
Ujjwal R. Bharadwaj ◽  
Vadim V. Silberschmidt ◽  
John B. Wintle ◽  
Julian B. Speck
Keyword(s):  
Inventory Management ◽  
Optimal Level ◽  
Risk Profile ◽  
Spare Parts ◽  
Inventory Level ◽  
Machine Availability ◽  
Inventory Optimization ◽  
Spare Parts Inventory ◽  
Current Context ◽  
Capital Intensive

Spare parts inventories assist maintenance staff to keep equipment in operating condition. Thus the inventory level of spares has a direct bearing on machine availability, a factor that is increasingly important in capital-intensive industries. This paper presents a risk based approach for spare parts inventory optimization. At the outset, the paper highlights the unique features of maintenance inventories, such as spare parts inventories, compared to other inventories such as work-in-progress or finished product inventories. After a brief mention of the principles on which many of the current inventory management models are based and their limitations, the paper presents a risk-based methodology to spares inventory management. ‘Risk’ in the current context is the risk in monetary terms that arises when a component (spare) is not available on demand. It is the expected value of loss, i.e., the product of the likelihood of unavailability of the spare from the inventory and an estimate of the consequence(s) of that unavailability. Given a budgetary constraint and the risk profile of a number of spares, the model gives an optimal inventory of spares. By basing the inventory on the risk profile of spares, the model includes factors that are not normally considered in various other models. The ultimate aim of the methodology is to have an optimal level of spares inventory such that machine availability, to the extent it is dependent on the level of spares inventory, is maximized subject to constraints. The methodology is expected to benefit both, operational and financial managers.

scholarly journals The Determination Of Optimal Inventory Using Markov Chain

2016 ◽  
Vol 6 (1) ◽  
Author(s):  
Novie Novie ◽  
Haryadi Sarjono
Keyword(s):  
Markov Chain ◽  
Inventory Control ◽  
Spare Parts ◽  
Inventory Level ◽  
Research Results ◽  
Markov Chain Method ◽  
Crucial Problem ◽  
Optimal Inventory Level ◽  
A Company

The complication of inventory is a crucial problem for the company because inventory is one of the valuable assets for the company. The existence of inventory control is needed so the inventory levels that exist within the company is not in very large (optimal) therefore the costs incurred by the company can be suppressed as minimum as possible. PT NM is a company engaged in spare parts, especially branded cars in West Jakarta. The level of inventories of goods owned by  these  companies is high because The company did not want to experience stock out of stock but on one side the stock is large enough so the costs incurred  by  companies  such as storage costs of goods becomes even greater. In order to control inventory levels, this study uses a Markov Chain method that can identify optimal inventory level and the expectation of profits earned per month by making estimates of the future demand a previous demand. From the research results shows expectation of profit of each state starting from state 2 to state 10 is Rp 13.146,98921; Rp 12.246,94064; Rp 11.346,61466; Rp 10.444,64569; Rp 9.534,074035; Rp 8.584,408534; Rp 7.484,413248; Rp 5.913,288143; Rp 3.211,609986,-. While the profit expectations that earned by the company per month is Rp 694.233,333, and the optimal inventory level is 50.

A Combined Maintenance Strategy Considering Spares, Buffer, and Quality

2021 ◽  
pp. 1748006X2097281
Author(s):  
Shuyuan Gan ◽  
Bolun Wang ◽  
Zhifang Song
Keyword(s):  
Product Quality ◽  
Model Simulation ◽  
Optimal Solution ◽  
Spare Parts ◽  
Inventory Level ◽  
Maintenance Policy ◽  
Cost Rate ◽  
Qualification Rate ◽  
Maintenance Model ◽  
The Mathematical Model

This paper studies an innovative maintenance model for an upstream machine in a common production system. Multiple system-wise features are integrated in the model, including maintenance, spare parts, buffer inventory, and product quality. The objective is to minimize the system expected cost rate by determining the optimal inspection interval, preventive maintenance threshold, corrective maintenance threshold, reorder level of spare parts, maximum stock level of spare parts, and maximum inventory level of the buffer. In this maintenance model, both the hazard rate and the product qualification rate can trigger maintenance activities. The well-known proportional hazard model (PHM) is adopted to describe the state of the upstream machine. The effect of machine state on product quality is explicitly characterized. Due to the complexity of the mathematical model, simulation and a genetic algorithm are employed to determine the optimal solution. A case study of bearings is presented to demonstrate the performance of the proposed maintenance policy. The results show that this policy is practical and can reduce system cost significantly.

scholarly journals Joint Optimization of Preventive Maintenance and Spare Parts Inventory with Appointment Policy

2017 ◽  
Vol 2017 ◽  
pp. 1-12 ◽  
Author(s):  
Jing Cai ◽  
Yibing Yin ◽  
Li Zhang ◽  
Xi Chen
Keyword(s):  
Inventory Management ◽  
Preventive Maintenance ◽  
Spare Parts ◽  
Combination Method ◽  
Joint Optimization ◽  
Inventory Level ◽  
Cost Rate ◽  
Proposed Model ◽  
Spare Parts Inventory ◽  
The Cost

Under the background of the wide application of condition-based maintenance (CBM) in maintenance practice, the joint optimization of maintenance and spare parts inventory is becoming a hot research to take full advantage of CBM and reduce the operational cost. In order to avoid both the high inventory level and the shortage of spare parts, an appointment policy of spare parts is first proposed based on the prediction of remaining useful lifetime, and then a corresponding joint optimization model of preventive maintenance and spare parts inventory is established. Due to the complexity of the model, the combination method of genetic algorithm and Monte Carlo is presented to get the optimal maximum inventory level, safety inventory level, potential failure threshold, and appointment threshold to minimize the cost rate. Finally, the proposed model is studied through a case study and compared with both the separate optimization and the joint optimization without appointment policy, and the results show that the proposed model is more effective. In addition, the sensitivity analysis shows that the proposed model is consistent with the actual situation of maintenance practices and inventory management.

An EOQ Based Multi-Storage Location of Spare Part Inventories: A Case Study

2013 ◽  
Vol 315 ◽  
pp. 733-738 ◽  
Author(s):  
Noor Ajian Mohd-Lair ◽  
Chuan Kian Pang ◽  
Willey Y.H. Liew ◽  
Hardy Semui ◽  
Loh Zhia Yew
Keyword(s):  
Inventory Management ◽  
Spare Part ◽  
Spare Parts ◽  
Inventory Level ◽  
Management Technique ◽  
Inventory Management System ◽  
Spare Parts Inventory ◽  
Storage Location ◽  
Manual Recording

Spare parts inventory management is very important to ensure smooth operation of maintenance department. The main objectives of inventory management of spare parts are to ensure the availability of spares and materials for the maintenance tasks and increase the productivity of the maintenance department. This research centred on the development of the Computerised Inventory Management System (CIMS) for the maintenance team at Weida Integrated Industries Sdn. Bhd. The inventory management technique used to control the spare parts inventory in this research was the basic Economic Order Quantity models (EOQ). However, the CIMS developed is unique as it has the ability in handling inventories in multiple-storage locations. The CIMS was written using the Visual Basic 2010 software. This CIMS has the abilities to keep records and process the spare parts information effectively and faster besides helping the user to perform spare parts ordering tasks compared to the current manual recording. In addition, the ordering quantity and frequency for the CIMS is determined through the EOQ technique. However, observation indicates that the overall average inventory level currently at the factory is lower than the expected overall average inventory level produced by the CIMS. This is due to the fact that the CIMS was unable to consider the opening stock in ordering the inventories. Therefore, further improvements are needed to optimize the performance of the system such as using the EOQ with the reorder point technique, the periodic or continuous review system.

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