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.

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

2019 ◽  
Vol 3 (01) ◽  
pp. 38-46
Author(s):  
Akhmad Sutoni ◽  
Dani Hamdan Taufik
Keyword(s):  
Inventory Model ◽  
Inventory System ◽  
Inventory Systems ◽  
Q Method ◽  
Inventory Cost ◽  
Agricultural Cooperative ◽  
Reorder Point ◽  
Total Inventory ◽  
The Right ◽  
Cooperative Association

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 system 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.   Keywords— Inventory system, Probabilistic, Backorder, Method Q, Method P, Reorder point.

scholarly journals Inventory model for deteriorating items with negative exponential demand, probabilistic deterioration and fuzzy lead time under partial back logging

2020 ◽  
Vol 30 (3) ◽  
Author(s):  
Nabendu Sen ◽  
Sumit Saha
Keyword(s):  
Inventory Management ◽  
Lead Time ◽  
Probability Distributions ◽  
Optimal Strategies ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Optimal Time ◽  
Inventory Cost ◽  
Total Inventory ◽  
Negative Exponential

The effect of lead time plays an important role in inventory management. It is also important to study the optimal strategies when the lead time is not precisely known to the decision makers. The aim of this paper is to examine the inventory model for deteriorating items with fuzzy lead time, negative exponential demand, and partially backlogged shortages. This model is unique in its nature due to probabilistic deterioration along with fuzzy lead time. The fuzzy lead time is assumed to be triangular, parabolic, trapezoidal numbers and the graded mean integration representation method is used for the defuzzification purpose. Moreover, three different types of probability distributions, namely uniform, triangular and Beta are used for rate of deterioration to find optimal time and associated total inventory cost. The developed model is validated numerically and values of optimal time and total inventory cost are given in tabular form, corresponding to different probability distribution and fuzzy lead-time. The sensitivity analysis is performed on variation of key parameters to observe its effect on the developed model. Graphical representations are also given in support of derived optimal inventory cost vs. time.

scholarly journals Inventory Model with Partial Backordering When Backordered Customers Delay Purchase after Stockout-Restoration

2016 ◽  
Vol 2016 ◽  
pp. 1-16
Author(s):  
Ren-Qian Zhang ◽  
Yan-Liang Wu ◽  
Wei-Guo Fang ◽  
Wen-Hui Zhou
Keyword(s):  
Layer Structure ◽  
Inventory Model ◽  
Inventory Cost ◽  
Cost Component ◽  
Lipschitz Optimization ◽  
Partial Backordering ◽  
Demand Rate ◽  
Holding Cost ◽  
Total Inventory ◽  
Inventory Holding

Many inventory models with partial backordering assume that the backordered demand must be filled instantly after stockout restoration. In practice, however, the backordered customers may successively revisit the store because of the purchase delay behavior, producing a limited backorder demand rate and resulting in an extra inventory holding cost. Hence, in this paper we formulate the inventory model with partial backordering considering the purchase delay of the backordered customers and assuming that the backorder demand rate is proportional to the remaining backordered demand. Particularly, we model the problem by introducing a new inventory cost component of holding the backordered items, which has not been considered in the existing models. We propose an algorithm with a two-layer structure based on Lipschitz Optimization (LO) to minimize the total inventory cost. Numerical experiments show that the proposed algorithm outperforms two benchmarks in both optimality and efficiency. We also observe that the earlier the backordered customer revisits the store, the smaller the inventory cost and the fill rate are, but the longer the order cycle is. In addition, if the backordered customers revisit the store without too much delay, the basic EOQ with partial backordering approximates our model very well.

scholarly journals Manajemen Persediaan Tepung Terigu dengan Metode Economic Order Quantity (EOQ) pada Perusahaan Roti Nikki Echo Payakumbuh

2018 ◽  
Vol 1 (1) ◽  
pp. 21-27
Author(s):  
Desi Rahma Yani ◽  
Mega Amelia Putri ◽  
John Nefri
Keyword(s):  
Inventory Management ◽  
Production Cost ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Inventory Cost ◽  
Company Policy ◽  
Total Inventory ◽  
A Company

Inventory management has an important role in a company because inventory management can decrease production cost. Economic order quantity using to minimize the production cost. Inventory management of flour in bread company Nikki Echo not been seen clearly prove by  so many booking amount. It can giving addition of cost. The purpose of this research is (1) Analyzing optimal flour stock by using EOQ method in bread company Nikki Echo, (2) Analyzing reorder point raw material inventory by using EOQ method in bread company Nikki Echo, (3) Analyzing total raw material inventory cost by using EOQ method in bread company Nikki Echo. This research be held from February 20 until April 19 2018 in bread company Nikki Echo, Tanjung Pauh, Payakumbuh city, West Sumatera province. Flour stock by using EOQ method as much 17.394 kg it means the amount greater than company policy. That amount increase 79,6% from the amount set by company. Frequency of booking less than company policy that is 7 times booking. Amount of reorder by using EOQ method is 10.251 kg with the inventory lead time for 3 days. Total inventory cost by using EOQ method as many Rp 11.445.513. This value small than total inventory cost issued by company policy. Decreasing cost amount 98% from company policy. That cause by ordering amount reduced 33 times or same with 82,5% from the amount before

scholarly journals Controllable deterioration rate for time-dependent demand and time-varying holding cost

2014 ◽  
Vol 24 (1) ◽  
pp. 87-98 ◽  
Author(s):  
Vinod Mishra
Keyword(s):  
Linear Function ◽  
Inventory Model ◽  
Deteriorating Items ◽  
Inventory Cost ◽  
Deterioration Rate ◽  
Preservation Technology ◽  
Demand Rate ◽  
Holding Cost ◽  
Total Inventory ◽  
Dependent Demand

In this paper, we develop an inventory model for non-instantaneous deteriorating items under the consideration of the facts: deterioration rate can be controlled by using the preservation technology (PT) during deteriorating period, and holding cost and demand rate both are linear function of time, which was treated as constant in most of the deteriorating inventory models. So in this paper, we developed a deterministic inventory model for non-instantaneous deteriorating items in which both demand rate and holding cost are a linear function of time, deterioration rate is constant, backlogging rate is variable and depend on the length of the next replenishment, shortages are allowed and partially backlogged. The model is solved analytically by minimizing the total cost of the inventory system. The model can be applied to optimizing the total inventory cost of non-instantaneous deteriorating items inventory for the business enterprises, where the preservation technology is used to control the deterioration rate, and demand & holding cost both are a linear function of time.

Two-Echelon Inventory Stochastic Model of Supply Chain Based on Service Level Constraints

2014 ◽  
Vol 971-973 ◽  
pp. 2448-2451
Author(s):  
Da Li Jiang ◽  
Guang Fu Zhu ◽  
De Li
Keyword(s):  
Supply Chain ◽  
Stochastic Model ◽  
Service Level ◽  
Inventory Model ◽  
Inventory Level ◽  
Effective Algorithm ◽  
Inventory Cost ◽  
Total Inventory

The study on multi-echelon inventory of supply chain is becoming more and more important in E-business era. This paper proposes a two-echelon inventory model with one supplier and several retailers, in which a certain service level has to be satisfied and the goal is to minimize the total inventory cost. In addtion it puts forward an effective algorithm for this model to obtain the optimal replenishment period and inventory level of each supply chain node.

scholarly journals Impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution

2020 ◽  
Vol 11 (2) ◽  
pp. 1
Author(s):  
Rajesh Kumar Mishra ◽  
Vinod Kumar Mishra
Keyword(s):  
Sensitivity Analysis ◽  
Solution Procedure ◽  
Substantial Improvement ◽  
Inventory Model ◽  
Inventory Cost ◽  
Joint Replenishment ◽  
Total Inventory ◽  
Inventory Decisions ◽  
Optimal Ordering ◽  
Cost Of Substitution

<p>In this paper, impact of cost of substitution and joint replenishment on inventory decisions for joint substitutable and complementary items under asymmetrical substitution has been studied. The phenomenon of substitution is considered in a stock-out situation and when items become out of stock due to demand then unfulfilled demand is asymmetrically substituted by another item. We formulate the inventory model mathematically and derived optimal ordering quantities, optimal total costs and extreme value of substitution rate for all possible cases. Moreover, pseudo-convexity of the total inventory cost function is obtained and the solution procedure is provided. Numerical example and sensitivity analysis have been presented to validate the effectiveness of the inventory model and substantial improvement in total optimal inventory cost with substitution with respect to optimal total inventory cost without substitution is seen.</p><p><em><br /></em></p>

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 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 % .

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