Economic Analysis Development and Provider Elective Decision Model on Auto-ID Technology Investment

In the last few years, the warehousing system use Auto Identification technology to manage the warehouse operation. Auto-ID is often used to obtain the information about amount, location, content, and condition of part or product. However, some industries still use manual warehouse management. Manual warehouse management systems usually cause some problem like inventory shrinkage and stock out. The investment and application of Auto-ID technology on the warehouse system can reduce the effect of the manual system. The use of Auto-ID technology in warehousing systems has a significant effect on the reduction of human error, the reduction of loss of goods, the accuracy of inventory stock, and can handle the product in large quantities, the speed of acceptance, and improve the delivery process. In this research, the cost and benefit analysis was carried out to assess the Auto-ID technology investments. The cost of inventory shrinkage reduction, labor and stock out, and the increase of productivity and maintenance on the spare parts warehouse management system used to analyse the cost benefit. To determine the expected NPV value in Auto-ID technology investments used Monte Carlo analysis. Furthermore, a company’s evaluation for selecting an Auto ID provider is a significant aspect. The evaluation of decision making for selecting Auto ID vendors is based on three criteria. This is referred to as many criteria decision making. Vendor performance, service after installation, and system attributes are the criteria employed in the decision-making model. Evaluation of Auto-ID vendor selection is done by using AHP. Based on the results of AHP analysis for the selection of Auto-ID suppliers, it was found that supplier PT C was the main priority (39.3%) for best suppliers, and the last priority was PT B (13.8%).

TINJAUAN ATAS PENGELOLAAN PERSEDIAAN BAHAN BAKU PADA DIVISI KENDARAAN KHUSUS PT. PINDAD (PERSERO) KOTA BANDUNG

Raw Material Inventory management is a very important aspect for a company of commerce, industry, and manufacturing because it has considerable value and have an influence on the size of the operating costs. On the inventory management of raw materials that are running there are several issues that caused the lack of human resources issues, among others: if shortage of raw materials, the customer will be disappointed and if the excess raw materials then there are some burdens that must be on the responsibility of companies, among others, the cost of damage goods for too long in the store, inventory shrinkage cost of raw materials, etc. By doing this research, it is expected all of these problems can be overcome, so that helped PT. Pindad (Persero) Bandung in increasing the effectiveness of the work.To conduct this research, the writer uses descriptive method, is descriptive research method, which is a way of research to depict or describe clearly the object under study. Compaction collection techniques used were interviews, observarsi and library research.By doing research at PT. PINDAD can help the problems that arise and inventory management of raw materials to be faster without consuming a greater cost.Keywords: Raw Material Inventory Management

Optimal Decisions for Adoption of Item-Level RFID in a Retail Supply Chain with Inventory Shrinkage under CVaR Criterion

This paper investigates the effect of item-level RFID on inventory shrinkage in the retail supply chain, which consists of a risk-neutral manufacturer and a risk-averse retailer. Under conditional value-at-risk (CVaR) criterion, two different supply chain settings are discussed as follows. In the centralized setting, we develop the models in both RFID case and no RFID case, respectively. Comparisons between the two cases are made. In particular, a sufficient condition is given to judge whether to adopt item-level RFID. In the decentralized setting, we focus on discussing two different contract types including wholesale price contact and revenue sharing contract. Finally, number examples and sensitivity analysis are given to illustrate the proposed models. The results show that, for the centralized system, the sales-available rate, the recovery rate, and the tag cost are mainly the driving factors in evaluating the benefit of an item-level RFID. In particular, when the sales-available rate and the tag cost are quite small and the recovery rate is higher, the supply chain partners’ profits obtained by investment for RFID are improved significantly. For the decentralized system, under revenue sharing contract, Pareto improving outcome and coaffording risk can be achieved if the retailer sets an appropriate parameter for the manufacturer.

Inventory Management, Shrinkage Concerns, and Related Corrective RFID Strategies

RFID-based solutions are essential inventory management tools, supplying more information than the standard barcode that help eliminate the potential for inventory stock-outs and reducing theft-based inventory shrinkage. A relatively detailed discussion of these techniques is included in this chapter by addressing some of the many concerns of inventory shrinkage. As is evident from the empirical section of this chapter, although RFID may be perceived as a cutting-edge business solution, RFID systems and its implementations still prove to be a difficult process to implement and achieve. Many companies have avoided the idea of introducing RFID systems, possibly due to being overwhelmed with the new technologies. However, its impacts on reducing inventory shrinkage are fairly clear and decisive.