scholarly journals Optimising a Model of Minimum Stock Level Control and a Model of Standing Order Cycle in Selected Foundry Plant

2013 ◽  
Vol 13 (3) ◽  
pp. 97-100
Author(s):  
J. Szymszal ◽  
T. Lis ◽  
J. Przondziono ◽  
K. Nowacki ◽  
J. Kliś
Keyword(s):  
Inventory Management ◽  
Raw Materials ◽  
Optimal Level ◽  
Optimal Order ◽  
Inventory Level ◽  
Optimal Size ◽  
Level Control ◽  
Inventory Costs ◽  
Total Inventory ◽  
Rational Management

Abstract It has been found that the area where one can look for significant reserves in the procurement logistics is a rational management of the stock of raw materials. Currently, the main purpose of projects which increase the efficiency of inventory management is to rationalise all the activities in this area, taking into account and minimising at the same time the total inventory costs. The paper presents a method for optimising the inventory level of raw materials under a foundry plant conditions using two different control models. The first model is based on the estimate of an optimal level of the minimum emergency stock of raw materials, giving information about the need for an order to be placed immediately and about the optimal size of consignments ordered after the minimum emergency level has occurred. The second model is based on the estimate of a maximum inventory level of raw materials and an optimal order cycle. Optimisation of the presented models has been based on the previously done selection and use of rational methods for forecasting the time series of the delivery of a chosen auxiliary material (ceramic filters) to a casting plant, including forecasting a mean size of the delivered batch of products and its standard deviation.

scholarly journals MATERIAL REQUIREMENT PLANNING UNTUK MEMENUHI PRODUKSI PADA CV. BANGUN CIPTA ARTHA DI BADUNG

2020 ◽  
Vol 9 (2) ◽  
pp. 426
Author(s):  
I Made Sugita Yasa ◽  
Kastawan Mandala
Keyword(s):  
Inventory Management ◽  
Lot Sizing ◽  
Raw Materials ◽  
Raw Material ◽  
Exact Order ◽  
Lot Size ◽  
Inventory Costs ◽  
Material Requirement Planning ◽  
Material Requirement ◽  
Total Inventory

Inventory management without Material Requirement systems in CV. Bangun Cipta Artha resulted in the lot size for each order of raw materials not optimal. One concept that can be used to plan and control raw materials is the Material Requirement Planning. This study is to determine the number of sizes of raw material orders, the exact order time, the method that produces the lowest cost for each raw material, and the effect of using MRP on inventory costs. This research conducted on 160x200cm spring bed products. Data was analyzed by making production master schedules, determining net requirements, determining lot size, and making MRP tables. Based on the results, the determination the best lot sizing is the order quantiy period which results in a total inventory cost of Rp. 26,475,220 where the total cost is lower, compared to lot for lot method which Rp. 43,464,000. part period balancing Rp. 33,106,576, and conventional method Rp.49,472,912. Keywords: Material Requirement Planning (MRP), Sizing Lot, Lot For Lot, Balancing Part Period, Period Order Quantiy

scholarly journals SUPPLY LEAD TIME UNCERTAINTY IN A SUSTAINABLE ORDER QUANTITY INVENTORY MODEL

2013 ◽  
Vol 4 (4) ◽  
pp. 15-27 ◽  
Author(s):  
Salvatore Digiesi ◽  
Giorgio Mossa ◽  
Giovanni Mummolo
Keyword(s):  
Inventory Management ◽  
Lead Time ◽  
Expected Value ◽  
Air Pollutant ◽  
Pollutant Emission ◽  
Optimal Order ◽  
Inventory Level ◽  
Order Quantity ◽  
Industrial Case Study ◽  
Safety Stock

Abstract Transport plays a key role in inventory management since it affects logistic costs as well as environmental performance of the supply chain. Expected value and variability of supply lead time depend on the transportation means adopted, and influence the optimal values of order quantity, reorder level, and safety stock to be adopted. Fast transportation means allow reducing expected value of the lead time; they are characterized by the highest costs of externalities (i.e. air pollutant emission, noise, congestion, accidents). On the contrary, slow transportation means require high inventory level due to large order quantity; in this case costs of externalities tend to decrease. The Sustainable Order Quantity (SOQ) [1] allows identifying optimal order quantity, reorder level, safety stock as well as transportation means which minimize the sum of the logistic and environmental costs in case of stochastic variability of product demand. In this paper, the authors propose a new SOQ analytical model considering stochastic variability of supply lead time (LT). A solution procedure is suggested for solving the proposed model. The approach is applied to a real industrial case study in order to evaluate the benefits of applying it if compared with the traditional one.

scholarly journals ANALISIS KINERJA MANAJEMEN PERSEDIAAN PRODUK UD. SINAR JAYA KARANGASEM

2021 ◽  
Vol 10 (3) ◽  
pp. 270
Author(s):  
I Putu Adi Sanjaya ◽  
Ni Ketut Purnawati
Keyword(s):  
Inventory Management ◽  
Descriptive Analysis ◽  
Safety Stock ◽  
Total Cost ◽  
Inventory Costs ◽  
Actual Application ◽  
Total Inventory ◽  
Operational Activities ◽  
Abc Analysis ◽  
Product Inventory

Inventory plays an important role in the company's operational activities, it is necessary to do inventory management in order to minimize losses caused by the large inventory costs. This research is conducted at UD. Sinar Jaya, aims to determine the performance of product inventory management and whether it’s efficient or not. Research data are obtained through interviews and observations. Descriptive analysis technique is used, which describes systematically several stages starting with ABC analysis, EOQ calculation, safety stock calculation, re-order point calculation, maximum inventory calculation, inventory turnover calculation, and comparing the total inventory cost between the method applied by the company with the EOQ method. Results show that product inventory management performance is not efficient. This is indicated by the total cost of inventory incurred using the company method in 2019 amounting to IDR 43,058,137. The product inventory management system that should be carried out is to classify products with ABC analysis, then determine EOQ of 1,208 units, determine safety stock of 518 units, and determine the re-order point of 1,099 units for each classification at unit A, so that the total cost of inventory incurred is only IDR 32,716,517 or 24.02 % lower than the actual application of company methods. Keywords: ABC analysis, EOQ, inventory costs

scholarly journals PENDAPATAN USAHA DAN PERSEDIAAN BAHAN BAKU INDUSTRI BAWANG GORENG (Studi Kasus Industri Bawang Goreng “Uda Saprudin”)

2020 ◽  
Vol 13 (2) ◽  
pp. 8-17
Author(s):  
Herlena Bidi Astuti ◽  
Yesmawati Y ◽  
Linda Harta ◽  
Reswita R
Keyword(s):  
Lead Time ◽  
Raw Materials ◽  
Raw Material ◽  
Added Value ◽  
Operating Income ◽  
Inventory Costs ◽  
The Past ◽  
Total Inventory ◽  
C Value

Processing shallots into fried onions is one of the agro-industry businesses with the main raw material of shallots. The fried onion home industry is a downstreaming of agricultural commodities by providing added value from the raw materials of shallots, in the process of production competition the industry must conduct management that will produce raw materials to ensure obtaining products. The purpose of this study was to determine the operating income of fried onions and determine the management of raw materials in the "Uda Saprudin" fried onion industry in Bengkulu City. The method used in this study is the calculation of income, R / C ratio, and management of raw materials using EOQ, Safety Stock, Reorder Points, lead time and total inventory costs. This research is a case study conducted in February 2019 with the data used is the data of the past year (2018). From the research results obtained R / C value of 1.36 and the management of raw material requirements recognized EOQ value: 6.546 Kg, Reorder Point value: 6.329 Kg / Month, lead time: 0.5 months and Total inventory costs: Rp. 163,676,047 per year.

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.

AMERICAN EXPERIENCE AND PROBLEMS OF THE TAXATION OF SMALL BUSINESS

2018 ◽  
Author(s):  
Sergey Kaledin ◽  
Ekaterina Shestakova
Keyword(s):  
Small Business ◽  
Inventory Management ◽  
Raw Materials ◽  
The United States ◽  
Optimal Order ◽  
Accounting System ◽  
American Experience ◽  
The Usa ◽  
Materials Used

Development of small business in the USA can be connected with a number of the reasons among which it is possible to call as the features of historical character connected with emergence and development of the United States and the reasons of tax character. So, in each state privileges on taxes which allow to organize in the best way by use of tax planning business can be established. It is represented that the institutionalism is indissoluble with the taxation as in the taxation there are institutes, customs, for example, regarding check of conscientiousness of the taxpayer, use of the special tax treatments and the habits, so at many businessmen and the companies became a habit earlier to pay taxes, to form an overpayment on taxes for the purpose of decrease in risks of additional accrual of penalties, others opposite, created a habit of a conclusion of the capitals abroad to low-tax territories for the purpose of decrease in the tax load. One of the topical problems is the problem of choosing the optimal structure of capital, i.e. determination of the ratio of own and long-term borrowed funds. Production reserves in the Russian accounting system are either goods purchased for later sale, or raw materials used for production. For a financial manager, stocks are immobilized funds, i.e. funds withdrawn from circulation. Without such an immobilization is indispensable, however, indirect losses should be minimized. To minimize the costs of maintaining current stocks at the proper level, the approach based on the concept of the optimal order (delivery) order is used. In the theory of inventory management, special models have been developed to determine the volume of one order lot and the frequency of orders.

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 Analysis of Inventory Level Optimization Using PSONN Model and Fuzzy Logic Approach

2019 ◽  
Vol 5 (10) ◽  
pp. 1-6
Author(s):  
Yogesh . ◽  
Sudhir Shrivastava
Keyword(s):  
Inventory Management ◽  
Raw Materials ◽  
Research Work ◽  
Inventory Model ◽  
Inventory Level ◽  
Financial Loss ◽  
Area Of Interest ◽  
Employee Attrition ◽  
Fuzzy Logic Approach ◽  
Artificial Intelligence Models

Raw materials, intermediate goods and finished goods are termed as inventories while considering it as portion of business’s assets which can be considered as prepared or are prepared for sale. One of the suitable solutions is to design optimal inventory model. Major concern of industry is to design suitable inventory model. Some of the existing inventory management research work are discussed in literature. But this field is still a big area of interest. Many research works used artificial intelligence models for inventory management. One amongst the area for inventory management is worker behavior in a company. So, employees are taken into account to be as an inventory that contributes in growth of an organization. Employee attrition may be a big issue for the organizations specially once trained, technical and key staff leave for a far better chance from the organization. This results in financial loss to replace a trained employee. Therefore, this paper uses the current and past employees’ data to analyze attrition behavior of employees and to provide bonus/promotion to employees having non attrition behavior by using PSONN and fuzzy rules. The result shows that the efficiency of model is improved with respect to existing methods by approximately 2%.

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 The Capacitated Sustainable EOQ Models: Models Considering Tax Emissions

2019 ◽  
Vol 21 (1) ◽  
pp. 12
Author(s):  
Sri Kurnia Dwi Budi Maulana ◽  
Dana Marsetiya Utama ◽  
Mochammad Samsul Asrofi ◽  
Inggit Sekar Ningrum ◽  
Nidaul Alba ◽  
...  
Keyword(s):  
Sensitivity Analysis ◽  
Numerical Analysis ◽  
Raw Materials ◽  
Decision Makers ◽  
Lot Size ◽  
Environmental Aspects ◽  
Inventory Costs ◽  
Eoq Models ◽  
Capital Constraints ◽  
Total Inventory

The study investigated problems of determining the lot size by considering sustainability and capital constraints for purchasing raw materials and taxes. By using the Sustainable EOQ (SEOQ) models that considered environmental aspects, the researchers also evaluated the capital constraints. The proposed models were used to minimize total inventory costs. In this study, there was a practical numerical analysis and sensitivity analysis to help decision-makers and policies on inventory problems. Finally, the experimental results showed that the proposed models were effectively used to solve the problems.

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