scholarly journals An Optimized System to Reduce Procurement Risks and Stock-Outs: A Simulation Case Study for a Component Manufacturer

2021 ◽  
Vol 11 (21) ◽  
pp. 10374
Author(s):  
Diego Gallego-García ◽  
Sergio Gallego-García ◽  
Manuel García-García
Keyword(s):  
Inventory Management ◽  
Material Requirements Planning ◽  
Supply Disruptions ◽  
Eoq Model ◽  
Efficient Management ◽  
Joint Strategy ◽  
Order Quantities ◽  
Supply Costs ◽  
Procurement Planning

In the current global system; supply chains are at risk due to increasing procurement shortages, supply disruptions, and the reliability of on-time deliveries with the original order quantities. As a result, an anticipated management model is of vital importance to provide companies with the productive flexibility necessary to adapt quickly to supply changes, in order to ensure the quality and delivery time through efficient management of stocks and supply costs. In this context, this research aims to develop a system to complement classical procurement planning based on inventory management methods and MRP (material requirements planning) systems by considering suppliers’ behavior regarding procurement risks. For this purpose, a system is developed that seeks to simulate the impacts of procurement shortages of different natures. Moreover, the research investigates the development of a system that performs procurement planning of a component manufacturer to determine the supply orders necessary to meet the master production schedule. The system is analyzed based on a set of indicators in the event that the supplier of a material needed for production does not supply on time or has short-term problems. Several scenarios are simulated, and the results are quantified by changing the procurement order quantities, which may or may not follow the economic order quantity (EOQ) model, and the potential procurement disruptions or shortages. The results show how the simulation and anticipation of potential suppliers’ procurement behavior concerning potential shortages and their probability are key for successful procurement within a joint strategy with classical procurement methods.

An EOQ Model for Reuse and Recycling Considering the Balance of Supply and Demand

2015 ◽  
Vol 9 (3) ◽  
pp. 303-311 ◽  
Author(s):  
Tomomi Nonaka ◽  
◽  
Nobutada Fujii ◽  
Keyword(s):  
Inventory Management ◽  
Reverse Logistics ◽  
Supply And Demand ◽  
Computer Experiments ◽  
Demand And Supply ◽  
Product Demand ◽  
Eoq Model ◽  
Proposed Model ◽  
Using Data

Inventory management in reverse logistics is more complex than that in conventional logistics because of uncontrollable factors such as inventory levels increasing from reverse logistics, greater-than-expected disposal, and balance of supply and demand with changing market trends. This paper proposes a new economic order quantity (EOQ) model for reuse and recycling by expanding the EOQ model proposed by Dobos and Richter, 2004. The proposed model introduces a sequentially accumulated marginal reuse rate as a parameter in considering the balance of product demand and supply. The marginal reuse rate is calculated by using data on production distribution and disposal distribution of products for every discretized period. This model considers the sequence among recovery options: reuse, recycle and disposal. Parts are reused after having been inspected to determine whether they are reusable or not. Remaining nonreusable parts are recycled and any remaining nonrecycled parts disposed of. The extended EOQ model is applied to a case study using different scenarios for length of use and multiple generations of products. Results of computer experiments confirmed the effectiveness of the proposed method.

scholarly journals ANALISIS PERSEDIAAN KOPI DALAM MEMENUHIPERMINTAAN PASAR (Studi kasus di Kelompok Tani Rahayu Kecamatan Pangalengan Kabupaten Bandung )

2017 ◽  
Vol 3 (2) ◽  
pp. 23
Author(s):  
Wini Fetia Wardhiani
Keyword(s):  
Inventory Management ◽  
Study Data ◽  
Inventory Model ◽  
Market Demand ◽  
Total Cost ◽  
Eoq Model ◽  
Model Research ◽  
The Village ◽  
Case Study Data

An analysis of the coffee supply to meet market demand, a case study in the "FarmersRahayu" Pangalengan, Bandung regency. Rahayu Farmer Group is one of the most advanced coffee producer compared with other farmer groups in the village Margamulya. However, Rahayu Farmer Group have yet to implement a particular supply model for managing a supply of coffee. Thus, Farmers Group Rahayu not know how efficient and effective inventory management coffee they have done. Therefore, the authors feel compelled to discuss more about the study of coffee in the inventory management Rahayu Farmer Group. The purpose of this research is to know about the inventory management is done by Farmers Group Rahayu and coffee inventory management according to the model of EOQ (Economic Order Quantity). Model Research conducted in this study is a case study. Data collection techniques used were observation, interview, and literature study.The results prove that inventory management is done by Farmers Group Rahayu has not been effective and efficient. This can be evidenced through a comparison between the inventory model used by the actual conditions that occur in the company. EOQ inventory model has a total cost of 17.43% lower. EOQ model with safety stock have 5% lower total cost of supply.

scholarly journals Inventory Level Improvement in Pharmacy Company Using Probabilistic EOQ Model and Two Echelon Inventory: A Case Study

2020 ◽  
Vol 13 (3) ◽  
pp. 229-242
Author(s):  
Desy Anisya Farmaciawaty ◽  
◽  
Mursyid Hasan Basri ◽  
Akbar Adhi Utama ◽  
Fransisca Budyanto Widjaja ◽  
...  
Keyword(s):  
Inventory Management ◽  
Lead Time ◽  
Inventory Level ◽  
Setup Cost ◽  
Inventory Cost ◽  
Decentralized System ◽  
Class A ◽  
Eoq Model ◽  
Holding Cost

Abstract. This research is aimed to maintain the inventory level in a two-echelon pharmacy company. The company is a pharmacy company that has 16 branches that operate in Bandung and the surrounding area. The company has a problem with its high inventory cost. To solve the problem, the authors compare two methods that suit the company condition, i.e., the decentralized system using probabilistic EOQ model and the centralization system using the multi-echelon inventory technique. We analyzed sales data and on-hand inventory data acquired from the company information system to perform the study. We limit the scope to the class A items only. We also assume the lead time, setup cost, and holding cost used in this study with the company's owner's consent. To conclude, using the decentralized system, the company will save 31% of their inventory cost, while using the centralization system with the multi-echelon technique, the company will be able to save 61% of their inventory cost. We recommend the company to refer to its competitive strategy before deciding which model it would be implemented. Keywords: Centralization, Decentralization, Probabilistic Economic Order Quantity (EOQ), Multi-Echelon Inventory, Pharmaceutical Inventory Management

A systematic literature review of healthcare supply chain and implications of future research

2019 ◽  
Vol 13 (4) ◽  
pp. 405-435 ◽  
Author(s):  
Anuj Dixit ◽  
Srikanta Routroy ◽  
Sunil Kumar Dubey
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Inventory Management ◽  
Cold Chain ◽  
Future Research ◽  
Research Papers ◽  
Content Type ◽  
Drug Manufacturing ◽  
Customer Training

Purpose This paper aims to review the healthcare supply chain (HSC) literature along various areas and to find out the gap in it. Design/methodology/approach In total, 143 research papers were reviewed during 1996-2017. A critical review was carried out in various dimensions such as research methodologies/data collection method (empirical, case study and literature review) and inquiry mode of research methodology (qualitative, quantitative and mixed), country-specific, targeted area, research aim and year of publication. Findings Supply chain (SC) operations, performance measurement, inventory management, lean and agile operation, and use of information technology were well studied and analyzed, however, employee and customer training, tracking and visibility of medicines, cold chain management, human resource practices, risk management and waste management are felt to be important areas but not much attention were made in this direction. Research limitations/implications Mainly drug and vaccine SC were considered in current study of HSC while SC along healthcare equipment and machine, hospitality and drug manufacturing related papers were excluded in this study. Practical implications This literature review has recognized and analyzed various issues relevant to HSC and shows the direction for future research to develop an efficient and effective HSC. Originality/value The insight of various aspects of HSC was explored in general for better and deeper understanding of it for designing of an efficient and competent HSC. The outcomes of the study may form a basis to decide direction of future research.

Inventory management of multiple items with irregular demand: A case study

2010 ◽  
Vol 205 (2) ◽  
pp. 313-324 ◽  
Author(s):  
George Nenes ◽  
Sofia Panagiotidou ◽  
George Tagaras
Keyword(s):  
Inventory Management

ANALYSIS OF THE MANAGEMENT OF MATERIAL AND TECHNICAL ASSETS OF ENTERPRISES

2021 ◽  
Vol 116 (1) ◽  
pp. 293-299
Author(s):  
Aizhan Talgatkyzy Syrkebai
Keyword(s):  
Inventory Management ◽  
Realistic Model ◽  
Process Approach ◽  
Sustainable Competitive Advantage ◽  
Order Quantity ◽  
Specific Product ◽  
Abc Classification ◽  
Eoq Model ◽  
Demand Rate ◽  
Abc Analysis

Variability of demand for goods, depending on their availability and cost is a frequently observed phenomenon in the sphere of production and consumption. This paper discusses the possibility of using the ABC analysis for the inventory management system. This type of analysis makes it possible to apply various methods of inventory management for increasing the income and reducing the costs of particular products for manufacturers. As is known, the management process approach emphasizes the systematic study of management by defining management functions in an organization and then examining each in detail. There is a general agreement on the planning, organizing, and controlling functions. Traditional inventory management systems, such as the Lean Order Quantity (EOQ) model, are based on the assumptions of constant demand rate, constant inventory cost, and instant order. The EOQ assumption of instant order receipt means that the entire order quantity, that is, all units of the purchased lot is immediately received from the supplier. The Economic Production Quantity (EPQ) model weakens this assumption by including incremental order receipt, i.e. debit. In recent years, major advances in the sphere of management include the following elements: process approach management science decision support approach, scientific approach to human resources development, and sustainable competitive advantage. These four approaches complement one another in current practice and provide a useful framework for project management. This paper presents a realistic model of the goods production and their inventory, since ABC analysis or ABC classification is an integral part of materials management. According to this approach, the inventory is divided into three categories depending on income generation. The ABC analysis helps entrepreneurs identify the main types of products in the warehouse, prioritize the goods management based on their cost, and analyze customer demand for a specific product.

scholarly journals Inventory Management Evaluation and Inventory Forecast Using EOQ

2021 ◽  
Vol 6 (1) ◽  
pp. 395
Author(s):  
Rorim Panday ◽  
Dovina Navanti
Keyword(s):  
Inventory Management ◽  
Business Strategy ◽  
Fashion Industry ◽  
Substantial Loss ◽  
Management Evaluation ◽  
Eoq Model ◽  
Seasonal Model ◽  
A Company

The fashion industry that is gamis in Indonesia is growing rapidly because the majority of the population is Moslem. Elzatta is a company that does business on Moslem clothing, one of its products is the gamis. The company is experiencing problems with stockpiling in warehouses, because of models that were not sold, as well as outdated models. With the accumulation of products in warehouses in 2017 and 2018, many products will be damaged. For this reason, the company runs a buy one get one business strategy and sells products at low prices. As a result, the company suffered a substantial loss. For this reason, it is necessary to evaluate the inventory management that has been carried out using the EOQ model. For 2019, it is necessary to plan the number of products to be sold and apply the EOQ model. The results of evaluations in 2017 and 2018, by using EOQ the company could save 64.78% for 2017 and 63.40% for 2018. Whereas for 2019, after forecasting the number of sales using the seasonal model, sales projections are similar to the number of sales in the previous years, so that the number of products needed for a single order is 1364 pcs.

scholarly journals PERENCANAAN DAN PENGENDALIAN PERSEDIAAN BAHAN BAKU PAIL CAT MENGGUNAKAN METODE MATERIAL REQUIRMENT PLANNING (MRP) PADA PT. XYZ

JUMINTEN ◽  
2020 ◽  
Vol 1 (4) ◽  
pp. 163-172
Author(s):  
Vify Elviana ◽  
Akmal Suryadi
Keyword(s):  
Inventory Management ◽  
Consumer Demand ◽  
Raw Materials ◽  
Raw Material ◽  
Economic Order Quantity ◽  
Economic Order ◽  
Order Quantity ◽  
Material Requirements Planning ◽  
Total Cost ◽  
Material Requirements

Persediaan merupakan aset perusahaan yang memiliki peran penting dalam operasi bisnis, sehingga perusahaan penting untuk melakukan manajemen persediaan yang baik, artinya perusahaan harus mampu mengantisipasi kendala maupun tantangan yang ada dalam pengelolahan persediaan untuk meminimalisasi total biaya yang harus dikeluarkan oleh perusahaan. Permasalahan yang timbul pada persediaan bahan baku di PT XYZ adalah perusahaan melakukan perencanaan dan pengendalian bahan baku hanya berdasarkan pada pengalaman-pengalaman sebelumnya dan tidak berdasarkan pada metode yang sudah baku. Oleh karena itu pembelian bahan baku tidak sesuai dengan permintaan konsumen. Hal tersebut sering menyebabkan terjadinya kelebihan maupun kekurangan stok bahan baku. Kesalahan dalam penentuan besarnya investasi dalam persediaan akan mengurangi keuntungan perusahaan. Adanya persediaan bahan baku yang terlalu besar, akan menambah beban biaya pemeliharaan dan penyimpanan dalam gudang, serta kemungkinan terjadinya penurunan kualitas bahan baku yang dapat menyebabkan berkurangnya keuntungan perusahaan. Namun jika persediaan bahan baku terlalu sedikit maka akan berakibat pada terhambatnya proses produksi, sehingga tidak terpenuhinya permintaan konsumen. Hasil penelitian ini dapat menyimpulkan bahwa perencanaan kebutuhan bahan baku dengan metode perusahaan didapatkan total cost sebesar Rp 1.796.762.429,-, sedangkan metode Material Requirements Planning (MRP) didapatkan total cost sebesar Rp 1.576.011.801,-. Maka dapat disimpulkan telah terjadi penurunan total cost seluruh bahan baku sebesar 12,28%. Hal ini membuktikan bahwa metode Material Requirements Planning (MRP) lebih efisien daripada metode PT. XYZ. Oleh karena itu untuk mendapatkan total cost yang minimum, metode Material Requirements Planning (MRP) diterapkan pada periode Februari-Juni 2020 sehingga didapatkan total cost sebesar Rp 1.576.011.801,-. Kata Kunci:         Material Requirements Planning (MRP), PT XYZ, Pail Cat, Economic Order Quantity (EOQ), Period Order Quantity (POQ), Lot For Lot (LFL). ABSTRACT                     Inventory is a company asset that has an important role in business operations, so the company is important to conduct good inventory management, meaning that the company must be able to anticipate obstacles and challenges that exist in managing inventory to minimize the total cost to be incurred by the company.The problem that arises in the supply of raw materials in PT XYZ is that the company plans and controls raw materials based only on previous experiences and not based on established methods. Therefore, the purchase of raw materials is not in accordance with consumer demand. This often leads to excess or shortage of raw material stock. Mistakes in determining the amount of investment in inventories will reduce company profits. The availability of raw materials that are too large, will add to the burden of maintenance and storage costs in the warehouse, as well as the possibility of a decline in the quality of raw materials that can lead to reduced company profits. However, if the supply of raw materials is too little, it will result in obstruction of the production process, so that consumer demand is not fulfilled. The results of this study can conclude that the planning of raw material needs by the company method obtained a total cost of Rp 1,796,762,429, - while the Material Requirements Planning (MRP) method obtained a total cost of Rp 1,576,011,801, -. Then it can be concluded that there has been a decrease in the total cost of all raw materials by 12.28%. This proves that the Material Requirements Planning (MRP) method is more efficient than the PT. XYZ. Therefore, to get the minimum total cost, the Material Requirements Planning (MRP) method was applied in the February-June 2020 period so that a total cost of Rp 1,576,011,801 was obtained.   KeyWords: Material Requirements Planning (MRP), PT XYZ, Pail Cat, Economic Order Quantity (EOQ), Period Order Quantity (POQ), Lot for Lot (LFL).

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