scholarly journals AN OPTIMAL ORDER QUANTITY OF SPARE PARTS TO MINIMIZE TOTAL INVENTORY COST USING PERIODIC REVIEW APPROACH (R,s,S) METHOD IN PT XYZ BANDUNG

2018 ◽  
Vol 2 (01) ◽  
pp. 60-66
Author(s):  
Feviana Betsi Purba ◽  
Luciana Andrawina ◽  
Murni Dwi Astuti
Keyword(s):  
Spare Parts ◽  
Optimal Order ◽  
Periodic Review ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Policy ◽  
Total Saving ◽  
Power Approximation ◽  
Manufacturing Company ◽  
Total Inventory

The availability of spare parts is very crucial thing for manufacturing company in order to support the continuity of production activities. PT XYZ is a manufacturing company which produces thread into fabric. In this case, inventory control of spare part is not properly managed. Inventory position of spare parts in warehouse is always more than inventory policy of the company itself or called overstock which causes total inventory cost is always high. Company only consider on the order fulfillment of spare parts to prevent downtime on the machine that increase performance of production. Hence, order quantity of spare parts is always excessive or not optimal. In this research, global inventory policy conducted in order to minimize total inventory cost is periodic review approach (R, s, S) method. This inventory policy will be calculated using power approximation and obtained total saving cost of holding cost by 31 % while total saving cost of order cost decreased by 7 %. Overall, total inventory cost minimized by 7 % or equal to Rp138.902.742.   Keywords—Inventory, Overstock, Spare Parts, Periodic Review, Power Approximation

scholarly journals An Optimal Order Quantity Of Spare Parts To Minimize Total Inventory Cost Using Periodic Review Approach (R,s,s) Method In PT. XYZ Bandung

2017 ◽  
Vol 1 (02) ◽  
Author(s):  
Feviana Betsi Purba ◽  
Luciana Andrawina ◽  
Murni Dwi Astuti
Keyword(s):  
Spare Part ◽  
Spare Parts ◽  
Optimal Order ◽  
Periodic Review ◽  
Order Quantity ◽  
Inventory Cost ◽  
Inventory Policy ◽  
Total Saving ◽  
Manufacturing Company ◽  
Total Inventory

The availability of spare parts is very crucial thing for manufacturing company in order to support the continuity of production activities. PT XYZ is a manufacturing company which produces thread into fabric. In this case, inventory control of spare part is not properly managed. Inventory position of spare parts in warehouse is always more than inventory policy of the company itself or called overstock which causes total inventory cost is always high. Company only consider on the order fulfillment of spare parts to prevent downtime on the machine that increase performance of production. Hence, order quantity of spare parts is always excessive or not optimal. In this research, global inventory policy conducted in order to minimize total inventory cost is periodic review approach (R, s, S) method. This inventory policy will be calculated using power approximation and obtained total saving cost of holding cost by 31 % while total saving cost of order cost decreased by 7 %. Overall, total inventory cost minimized by 7 % or equal to Rp138.902.742.

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%.

scholarly journals DETERMINATION OF INVENTORY PERIODIC REVIEW POLICY (R, s, S) USING POWER APPROXIMATION METHOD FOR MINIMIZE TOTAL INVENTORY COST IN PT. OPQ

2019 ◽  
Vol 3 (01) ◽  
pp. 47-52
Author(s):  
Ratnawia ◽  
Rio Aurachman ◽  
Saskia Puspa Kenaka
Keyword(s):  
Manufacturing Industry ◽  
Raw Materials ◽  
Service Level ◽  
Raw Material ◽  
Periodic Review ◽  
Inventory Cost ◽  
Automotive Manufacturing ◽  
Power Approximation ◽  
Total Inventory

OPQ is a company engaged in the automotive manufacturing industry. The company produces bolts for the safety area, it is related to the lower body of the four-wheeled vehicle. PT. OPQ was established in 2014 and today has already been the supplier for several major automotive companies in Indonesia. The demand of PT OPQ that must be fulfilled is increasing as the amount of consumer is increasing too. Due to the high demand, so the raw material stockout occurs. This make the company's service level is below the standard.   This study involved 48 sku of material raw materials that have normal distributed demand. Inventory policy applied in this research is periodic review (R, s, S) with the aim to minimize total cost of inventory and improve service level of company.   The result of this research was found to decrease total inventory cost by 15% with the value of existing inventory cost Rp1.100.879.479,- to Rp 936.061.349,- . In addition, service level at PT. OPQ has increased with the value of existing conditions 85% to 99%.   Keywords—Raw Material, Periodic Review, Probabilistic, Service Level, Stock out

scholarly journals AN INVENTORY POLICY ON AGROINDUSTRY SUPPLY CHAIN: A CASE STUDY OF FRUIT SEASONAL IN EAST JAVA

2021 ◽  
Vol 2 (2) ◽  
pp. 46-50
Author(s):  
Paramaditya Arismawati ◽  
Wahyu Andy Prastyabudi
Keyword(s):  
Maximum Level ◽  
Inventory Systems ◽  
Optimal Order ◽  
Periodic Review ◽  
Inventory Cost ◽  
Inventory Policy ◽  
Policy System ◽  
Deterioration Rate ◽  
Perishable Goods

To forestall the overstock or understock, inventory policy often considers thoroughly the optimal order quantity and order time. It is considerably getting more complex in the case of agroindustry as its commodity mostly is classified as perishable goods. The increase of order at a particular season sometimes is not counterbalanced with the number of stocks. The prevalent rationale of this problem is due to none of the appropriate inventory policy is implemented. The purpose of this research is to develop an inventory policy system in the case of agroindustry considering the inventory cost, deterioration rate of perishable fruits, and seasonal variable. Thus, it can be used to maintain the stability of demand while considering those variables. This study employs the periodic review (R,s,S) to construct an inventory policy. The periodic review is determined by order interval (R), a combination of reorder point (s), and maximum level (S). The experimental case study is presented to provide an example of an inventory policy. The inventory policy can alleviate the stocking problem of perishable and seasonal fruits encountered by the agroindustry. The method is able to minimize inventory cost by controlling the inventory systems. This paper offers a model of inventory policy on agroindustry to control and optimize the stocks while reckoning the inventory cost, deterioration rate, and seasonal to fulfil the demand.

scholarly journals Decreasing Total Inventory Cost by Controlling Inventory in Motorcycle Dealer

2020 ◽  
Vol 22 (2) ◽  
pp. 41-49
Author(s):  
David ◽  
Engmir ◽  
Irwan Budiman ◽  
Jusra Tampubolon
Keyword(s):  
Inventory Management ◽  
Demand Forecasting ◽  
Spare Parts ◽  
Order Quantity ◽  
Inventory Cost ◽  
Safety Stock ◽  
Safety Stocks ◽  
Forecasting Method ◽  
Total Inventory ◽  
Abc Analysis

This research was conducted at one of the motorcycle dealers in Indonesia. Besides selling motorcycles, this dealer also provides services to repair motorcycles and sells genuine motorcycle parts. Inventory management which the company carried out is still not good enough because there are still demand for spare parts from consumers that cannot be fulfilled by the company. The purpose of this study is to draw up a plan to control spare parts by paying attention to the spare parts that need to be considered, estimating the exact number of spare parts demand, knowing the smallest total inventory cost, knowing the amount of safety stock needed, and knowing when to reorder. In preparing the spare parts control, the methods used are ABC analysis, demand forecasting method, and EOQ method. The results of this study are plans to control the inventory of Tire, Rr. such as the forecasting sales of Tire, Rr. as many as 17338, economic order quantity of Tire Rr are 2158 units, the number of safety stocks of Tire, Rr. needed in 2020 are 1738 units, and the reorder point in 2020 is 8 times with the total inventory cost for Tire, Rr. in 2020 is Rp. 30,009,005.

scholarly journals Analisis Pengendalian Ketersediaan Bahan Baku Di PT. Akasha Wira Internasional, Tbk Menggunakan Metode EOQ

2020 ◽  
Vol 2 (1) ◽  
pp. 22
Author(s):  
Sandi Wardani ◽  
Sri Rahayuningsih ◽  
Ana Komari
Keyword(s):  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Optimal Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Safety Stock ◽  
Reorder Point ◽  
Total Inventory

This study aims to analyze the availability of raw materials at PT. Akasha Wira Internasional Tbk, analyzes the total cost of raw material inventories, analyzes to reorder point raw materials, analyzes the amount of safety stock of raw materials, analyzes raw material inventory control. The analytical method used is the Economic Order Quantity method, which is to find out the optimal order or purchase quantity with the aim of minimizing inventory costs consisting of ordering costs and storage costs. The results showed that the purchase of optimal ades 1500 ML label raw materials according to the Economic Order Quantity method during the 2017 period for each message was greater than what the company did. The optimal purchase of raw materials that must be done by the company in 2017 is 397 m with the frequency of ordering that must be done as much as 2 times. The safety stock quantity that must be available in the warehouse is 480.15 m and the Re Order Point according to the Economic Order Quantity is at the time of the inventory in the warehouse is 512.91 m. The total inventory cost for the production process incurred according to the Economic Order Quantity method is smaller than the total inventory cost incurred by the company. Keywords: Inventory, Raw Materials, Economic Order Quantity  Penelitian ini bertujuan untuk menganalisis ketersediaan bahan baku di PT. Akasha Wira Internasional Tbk, menganalisis total biaya persediaan bahan baku, menganalisis untuk melakukan pemesanan kembali (reorder point) bahan baku, menganalisis jumlah persediaan pengamanan barang  (safety stock) bahan baku, menganalisis pengendalian persediaan bahan baku. Penggunaan pendekatan yaitu metode Economic Order Quantity sebagai cara menyimpan bahan baku untuk ketersediaan biaya pesan dan biaya simpan bahan baku. Data yang diperoleh adalah data primer dan data sekunder. Pada bahan baku  ades 1500 ML tahun 2017 memiliki tingkat pemesanan yang lebih tinggi. Pembelian bahan baku optimal yang harus dilakukan perusahaan pada tahun 2017 adalah sebesar 397 m dengan frekuensi pemesanan yang harus dilakukan adalah sebanyak 2 kali. Kuantitas persediaan pengaman yang harus tersedia digudang adalah sebesar 480,15 m dan titik pemesanan kembali menurut Economic Order Quantity yaitu saat persediaan digudang tinggal 512,91 m. Maka dalam proses produksi menurut EOQ lebih kecil diabnding dengan total pembiayaan dari perusahaan.  Kata Kunci :  Persediaan , Bahan Baku, Economic Order Quantity

DETERMINATION OF INVENTORY PERIODIC REVIEW POLICY (R, s, S) USING POWER APPROXIMATION METHOD FOR MINIMIZE TOTAL INVENTORY COST IN PT. OPQ

2019 ◽  
Vol 3 (01) ◽  
Author(s):  
Ratna Wia ◽  
Rio Aurachman ◽  
Saskia Puspa Kenaka
Keyword(s):  
Manufacturing Industry ◽  
Raw Materials ◽  
Service Level ◽  
Raw Material ◽  
Periodic Review ◽  
Inventory Cost ◽  
Automotive Manufacturing ◽  
Power Approximation ◽  
Total Inventory

PT. OPQ is a company engaged in the automotive manufacturing industry. The company produces bolts for the safety area, it is related to the lower body of the four-wheeled vehicle. PT. OPQ was established in 2014 and today has already been the supplier for several major automotive companies in Indonesia. The demand of PT OPQ that must be fulfilled is increasing as the amount of consumer is increasing too. Due to the high demand, so the raw material stockout occurs. This make the company's service level is below the standard. This study involved 48 sku of material raw materials that have normal distributed demand. Inventory policy applied in this research is periodic review (R, s, S) with the aim to minimize total cost of inventory and improve service level of company. The result of this research was found to decrease total inventory cost by 15% with the value of existing inventory cost Rp1.100.879.479,- to Rp 936.061.349,- . In addition, service level at PT. OPQ has increased with the value of existing conditions 85% to 99%.

scholarly journals Analisis Pengendalian Persediaan Bahan Baku dengan Menggunakan Metode EOQ pada PT Sigma Indonesia MFG

JUDICIOUS ◽  
2020 ◽  
Vol 1 (2) ◽  
pp. 102-106
Author(s):  
Elsa Fitriyani ◽  
Matdio Siahaan
Keyword(s):  
Standard Deviation ◽  
Order Quantity ◽  
Microsoft Excel ◽  
Inventory Cost ◽  
Safety Stock ◽  
Total Inventory

Tujuan yang ingin dicapai dalam penelitian ini adalah untuk mengetahui apakah pengendalian persediaan bahan baku pada PT Sigma Indonesia Manufacturing sudah efisien atau belum. Bahan baku utama yang di gunakan PT Sigma Indonesia Manufacturing adalah material STKM diameter 8.0. PT Sigma Indonesia Manufacturing mengolah material STKM diameter 8.0 menjadi barang jadi yaitu Collar 8.0. Masalah yang di hadapi oleh perusahaan dalam kaitannya dengan persediaan bahan baku diantaranya adalah pembelian bahan baku yang optimal, persediaan pengaman, serta total biaya persedian bahan baku. Untuk menjawab permasalahan yang ada, penulis menggunakan metode EOQ (Economical Order Quantity). Analisis ini terdiri dari pembelian bahan baku yang optimal, Safety stock, dan Total Inventory Cost. Perhitungan pembelian bahan baku yang optimal dengan menggunakan metode EOQ (Economical Order Quantity), perhitungan Safety stock dicari hitung dengan menggunakan standard deviation sedangkan Total Inventory Cost dihitung dengan menggunakan Microsoft Excel. Data yang digunakan adalah data pembelian dan pemakaian bahan baku Collar 8.0 selama periode Januari 2016 sampai Desember 2018. Hasil yang didapatkan setelah dilakukan perhitungan EOQ jumlah bahan baku yang ekonomis untuk setiap kali pembelian pada tahun 2016 sejumlah 278 batang , tahun 2017 sejumlah 284 batang , tahun 2018 sejumlah 285 batang. Total Inventory Cost menurut perhitungan EOQ pada tahun 2016 adalah sebesar Rp165.591, tahun 2017 sebesar Rp168.754, tahun 2018 sebesar Rp169.325.Total Inventory Cost yang di keluarkan perusahaan pada tahun 2016 sebesar Rp215.268, tahun 2017 sebesar Rp219.380, tahun 2018 sebesar Rp220.122.

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.

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