An Excel based approach to optimise trade-offs between freight expediting and safety stock inventory costs

2006 ◽  
Vol 7 (2/3) ◽  
pp. 189
Author(s):  
Kal Namit ◽  
Fidelis Ikem ◽  
Moula Cherikh ◽  
Ephrem Eyob
Keyword(s):  
Safety Stock ◽  
Inventory Costs ◽  
Trade Offs

scholarly journals PENERAPAN METODE CROSSDOCKING UNTUK MEMINIMUMKAN BIAYA DISTRIBUSI DAN PERSEDIAAN PADA PT. XYZ

2020 ◽  
Vol 7 (2) ◽  
pp. 202-208
Author(s):  
St. Nova Meirizha ◽  
Ari Andriyas Puji ◽  
Ardi Adrian
Keyword(s):  
Competitive Advantage ◽  
Technological Development ◽  
Safety Stock ◽  
Total Cost ◽  
Distribution Costs ◽  
Inventory Costs ◽  
Target Company ◽  
Long Time ◽  
Main Components ◽  
A Company

Rapid technological development changes the form of competition between profit-oriented companies. The presence of new methods of company management is getting more intense due to the demands of a competitive advantage with other companies. One of the areas that can create competitive advantage is the operational sector. Furthermore, Supply Chain Management has become one of the main components as a competitive strategy to develop the productivity and profitability capabilities of a company. Meanwhile, crossdocking systems have been found for a long time, but the application is often not too significant for companies and there is still room for optimization. Therefore, the researcher was interested in carrying out research related to crossdocking. In this study, the target company is PT. XYZ as a distribution center company that has problems in managing distribution costs and supplies to its partners. By implementing crossdocking, it can help companies in minimizing distribution and inventory costs. The steps in this study are determining vehicle distribution routes, calculating the number of distribution fleets, scheduling distribution fleets, calculating the total safety stock and calculating the ratio of the total cost of supplies in the current condition to the proposed conditions. The research results obtained 2 optimal distribution routes with a total distribution fleet of 2 units, divided into fleet 1 with a capacity of 800 units and fleet 2 with a capacity of 767 units. As for the scheduling results, the makespan value of each fleet is obtained, namely 240 minutes for fleet 1 and 248 minutes for fleet 2. The amount of safety stock for each type of cellphone is Y19 with 27 units of safety stock, Y12 with 102 units of safety stock, Y30 with safety stock 75 units and V19 with safety stock 54 units. The total cost of supplies is 2,989,055 rupiah in one order process.

scholarly journals EOQ Development Model in Optimize Raw Material Inventory

2021 ◽  
Vol 2 (2) ◽  
pp. 59-65
Author(s):  
I Made Kartika ◽  
I Made Adi Suwandana ◽  
I Gusti Bagus Wirya Gupta ◽  
Putu Gede Denny Herlambang
Keyword(s):  
Sweet Corn ◽  
Raw Material ◽  
Development Model ◽  
Safety Stock ◽  
Inventory Costs ◽  
Corn Products ◽  
Distribution Process ◽  
Product Inventory

The purpose of this study was to determine the amount of safety inventory, order frequency, minimum inventory, maximum inventory limit, total Melon product inventory costs needed by PT. Rajawali Asia Bali uses the EOQ method. Data analyzed using the EOQ method shows that PT. Rajawali Asia Bali safety stock, it is very necessary to support the smooth distribution process that takes place. In accordance with the calculations with the formula, there is a safety stock that must be provided by PT. Rajawali Asia Bali is equal to 7,201 boxes. Planning for Sweet Corn products at PT. Rajawali Asia Bali using the EOQ method has 48.069 boxes.

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 Analisis Pengendalian Persediaan Bahan Baku Menggunakan Metode Min-Max (Studi Kasus PT.Djitoe Indonesia Tobacco)

2016 ◽  
Vol 15 (2) ◽  
Author(s):  
Ade Putri Kinanthi ◽  
Durkes Herlina ◽  
Finda Arwi Mahardika
Keyword(s):  
Production Process ◽  
Inventory Control ◽  
Raw Materials ◽  
Raw Material ◽  
Control Methods ◽  
Order Quantity ◽  
Safety Stock ◽  
Inventory Costs

<p><em>Inventories of raw materials are the company's current assets used for production activities at the company. Companies need to do the inventory control because it affects the smooth production process. A shortage can lead to disruption of the production process. While excess inventory can lead to waste because companies need to spend more capital for inventory costs. The purpose of this study to determine whether the PT. Djitoe Indonesia Tobacco has made raw material inventory control appropriately. Raw material inventory control methods used in this study are a min-max stock. This method determines the amount of safety stock, minimum stock, maximum stock and order quantity. After doing research, PT. Djitoe Indonesia Tobacco excess raw material inventory. Total inventories are controlled using the min-max stock produces more efficient results when compared to the amount of the final inventory of the company. With min-max method the company is able to economize IDR 700,000 for each period.</em></p>

Optimalisasi Persediaan Bahan Baku Keripik Kentang Dengan Metode Economic Order Quantity (Studi Kasus Di Agronas Gizi Food)

2019 ◽  
Vol 6 (01) ◽  
pp. 68-76
Author(s):  
Stefani Natalia Dinda Advenia ◽  
Maria Puri Nurani ◽  
Kukuk Yudiono
Keyword(s):  
Raw Materials ◽  
Raw Material ◽  
Safety Stock ◽  
Inventory Costs ◽  
Material Supply ◽  
Analysis Technique ◽  
Company Policy ◽  
Total Inventory ◽  
Supply Costs ◽  
The Cost

The optimalization of raw materials supply is intended to meet the needs of raw materials for the process of the production process the future; the activity of controlling raw materials manages the implementation of necessary supply in accordance with the required amount and minimal cost, which includes the problem of purchasing raw materials, storing and maintaining materials, controlling the output of the material when materials are needed and maintaining the optimal supply amount. The raw material supply control can be analyzed using the EOQ method as one of the choices in comparing the implemented company policies. This research was conducted at Agronas Gizi Food. The analysis technique used is by comparing the results of company policy calculation and the EOQ method. The calculation of company policy includes the cost of ordering  (S) with the results of Rp. 183,800 / order, supply costs (H) with a result of Rp.859 / Kg, total inventory costs (TIC) that must be spent Rp.5,689,560, the frequency of purchase 30 times, with an average purchase of 1500 kg / year while the calculation method EOQ includes economical purchases (Q*) with results of 4198 kg, frequency of purchases (F) with the result 10 times a year, total inventory costs (TIC) with the result of Rp.3,605,795, safety stock Rp.3,605,795, and ROP 234 Kg. Based on the analysis technique on raw material for potato chips in Agronas Gizi Food, it can be concluded that it is not optimal because the calculation the results of company policies are greater than the EOQ method.

Minum Rice Supply Needs in South Sulawesi-The case of Bulog Divre South Sulawesi

2019 ◽  
Vol 1 (2) ◽  
pp. 36-43
Author(s):  
Asyriah Arifunddin Arifunddin ◽  
Abd. Rahman Kadir ◽  
Sumardi Sumardi
Keyword(s):  
Agricultural Sector ◽  
Raw Material ◽  
Literature Study ◽  
Safety Stock ◽  
Inventory Costs ◽  
South Sulawesi ◽  
Calculation Results ◽  
Point Calculation ◽  
Using Data ◽  
One Year

One issue of the decline in the performance of the agricultural sector is claimed due to  changing the authority of BULOG in managing strategic food through trade system instruments.This study aims to analyze the system of rice supply Perum BULOG South Sulawesi in terms of the number of economic orders, minimum inventory, maximum inventory, and determining the point of reorder. This research was conducted at the Office of Public Logistics Bureau at Jln. Andi Pangeran Pettarani, Makassar. In research using data collection techniques by means of observation, literature study, interviews and documentation. Analysis of the data that has been selected is the Economic Order Quantity (EOQ). The results showed that from the calculation results to determine the economical amount of inventory using EOQ calculations, it is known that the costs of South Sulawesi Bulog raw material inventory in 2017 amounted to 235.41 tons with a ordering frequency of 310 purchases in one year. Whereas from 2017 the realization of the absorption of Bulog rice procurement in South Sulawesi in 2017 amounted to 324,554 tons, with an ordering frequency of 305 times with an average of 1,064 tons per order. If the company can implement the EOQ method can provide savings on raw material inventory costs and the accuracy in managing the amount of inventory. Based on the calculation of the safety stock, it can be seen that in 2017 Bulog must have a safety stock of rice in the warehouse of 18,264 tons to avoid a stock out. Based on the reorder point calculation, Bulog must reorder when the stock is 18,383 tons. The maximum inventory of rice that can be stored in a warehouse is 18,499 tons.

scholarly journals Modeling disruption in a fresh produce supply chain

2017 ◽  
Vol 28 (2) ◽  
pp. 656-679 ◽  
Author(s):  
Cameron A. MacKenzie ◽  
Aruna Apte
Keyword(s):  
Supply Chain ◽  
Fresh Produce ◽  
Management Strategies ◽  
Disruption Management ◽  
Supply Chain Disruptions ◽  
Safety Stock ◽  
Content Type ◽  
E Coli ◽  
Trade Offs ◽  
Additional Safety

Purpose The purpose of this paper is to quantify elements that make fresh produce supply chains (FPSCs) vulnerable to disruptions and to quantify the benefits of different disruption-management strategies. Design/methodology/approach This paper develops a mathematical model of a disruption in a FPSC and analyzes the relationships among variables. Findings The model determines the optimal safety stock as a function of the perishability of the produce, the length of time it takes to find the contamination, the level of demand during the disruption, and the amount of produce that can be rerouted. Applying the model to the 2006 E. coli spinach contamination reveals that the drop in customer demand for fresh spinach plays the largest role in Dole losing sales. Research limitations/implications The model includes several parameters that may be difficult to estimate. Future models can incorporate uncertainty that is inherent in supply chain disruptions. Practical implications The model in this paper can help a supply chain (SC) manager explore the trade-offs of different disruption-management strategies. For example, a SC manager can determine the value of holding additional safety stock vs trying to improve traceability in the SC. Originality/value This paper quantifies and models insights delivered in the qualitative analyses of FPSC disruptions. The theoretical contributions include an analysis of the interaction among safety stock, levels of demand, communication, and traceability parameters in order to help SC managers evaluate different strategies to mitigate the effects of contaminated produce.

scholarly journals Analysis Of Stock Control Of Raw Materials Of Dzohir Noodles In Bengkulu

2022 ◽  
Vol 3 (1) ◽  
Author(s):  
Monika Ahmelia ◽  
Herlin Herlin ◽  
Abdul Rahman
Keyword(s):  
Wheat Flour ◽  
Lead Time ◽  
Raw Materials ◽  
Raw Material ◽  
Inventory Cost ◽  
Safety Stock ◽  
Stock Control ◽  
Inventory Costs ◽  
Total Inventory ◽  
Research Period

This study aims to analyze the stock inventory control of Mie Dzohir's raw materials in Bengkulu. The analytical method used is Economic Order Quantity (EOQ), Reorder Point (ROP), Total Inventory Cost (TIC) and Safety Stock (SS). The results showed that to meet the raw material needs of 91,375 kg during the research period, from January 2020 to December 2020 (12 months), the number of economical purchases/EOQ of wheat flour raw materials that had to be made by the Mie Dzohir factory in Bengkulu was as much as 5,372 kg for each order with a purchase frequency of 17 times for a period from January 2020 to December 2020. Reorders or reorder points (ROP) can also be determined, namely reordering should be done when 345 kg of inventory is in warehouse, with a lead time of 1 days so as not to hamper the company's production process. The total inventory cost (TIC) can also be determined, namely the total cost of raw material inventory of Rp. 3.572.188, - therefore, it can save on inventory costs of Rp. 1.051.697,- .Safety stock (SS) of 95 kg which must be in the warehouse, this is intended therefore, there is no shortage of wheat flour raw materials if there is a delay in the delivery of raw materials.

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