Effects on undershoots and lost sales on the cycle service level for periodic and continuous review policies

Cardós, Manuel; Babiloni, Eugenia; Palmer, Marta E.; Albarracín, José Miguel

doi:10.1109/iccie.2009.5223854

Cited by 7 publications

(5 citation statements)

References 10 publications

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“…The current state Value Stream Mapping (VSM) is arranged as shown in Figure 2, with the cycle time of delivering the fertilizer obtained from the bagging to the loading processes at 9030 seconds with 7130 seconds value-added activity. Table 1 shows the waste identification process, which is calculated to get a 28.2% After identifying the time wasted in the sales warehouse, the 5 why's tools were used to analyze the root cause for recommendation and improvement, as shown in Table 2 [9].…”

Section: Resultsmentioning

confidence: 99%

Integrated Modelling of In-Bag Fertilizer Handling Process and Forklift Needs to Reduce Waste in Sales Warehouses of PT Petrokimia Gresik

Aghda

Siswanto

2021

IJPS

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PT. Petrokimia Gresik is one of the most outstanding fertilizer manufacturers with 5 sales warehouses. The Company organizes its distribution system to ensure adequate distribution to the right target. To plan the process of handling in-bag fertilizer, resources such as contract workers, forklifts, and trucks are needed. However, there are numerous wastes associated with the handling process, which is shown by forklift idle time due to the bagging, handling, and loading processes. Therefore, this research identifies the waste that occurs using the Value Stream Mapping (VSM) method with the 5 why's tool. This research also uses simulation to analyze and validate the recommendations. Data obtained through questionnaires showed that waste occurs due to waiting time by 28.2% and unnecessary motion by 22.7%. The described Process Activity Mapping (PAM) tools show that fertilizer delivery has cycle times of 9030 seconds, with value-added activities of 66%. The analysis of 5 why's tools shows that the low handling speed causes waste at the bagging and loading processes and the unnecessary motion of forklift-3. The recommendations according to the future state Value Stream Mapping (VSM) are adding the contract worker in the bagging process, removing forklift-3, and adding the contract worker in the loading process. Therefore, the value-added activity increases to 75.8% and accelerates the delivery cycle time to 7733 seconds. The validation results using the simulation shows that forklift-3 can be eliminated because it has a low utilization value of 16.4%, merging the activity of sewing services of 3% with a decrease in transfer time from 7.9 hours to 2.9 hours for one delivery cycle. In conclusion, the removal of all forklift-3 in 5 sales warehouse results shows that the company can save rental costs by Rp.4,772,376,000/year.

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Section: Resultsmentioning

confidence: 99%

Integrated Modelling of In-Bag Fertilizer Handling Process and Forklift Needs to Reduce Waste in Sales Warehouses of PT Petrokimia Gresik

Aghda

Siswanto

2021

IJPS

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“…Where CSL is cycle service level or the possibility of how much inventory can meet consumer demand so that stockouts do not occur (Achkar et al, 2024;Cardós et al, 2009). The CSL value determined by PT xyz is 90%.…”

Section: Inventory Managementmentioning

confidence: 99%

Forecast sales volume of aviation fuel in Jakarta using ARIMA Method to support inventory control

Setiyawan,

Wibowo,

Atok

2024

IJOMS

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The civil aviation industry in Indonesia experienced a significant increase from 2009-2018. The increase occurred in passenger and cargo activities. However, the situation changed drastically when the Covid-19 pandemic occurred throughout the world in 2019. PT xyz as a company need to adapt and optimize the business process. Inventory management is something that can be optimized. The aim of this research was to forecast aviation fuel demand in Jakarta and utilize the forecast result as a basis for inventory management. This research utilizes time series data on aviation fuel sales to determine demand estimates for the following month. The method used to forecast is the Autoregressive Integrated Moving Average. Furthermore, the forecast data is combined with information on storage capacity and historical data on product supply arrivals as input data in calculating safety stock to obtain more economical inventory management. The result of this research is that the best forecast avtur demand in Jakarta is using Arima (1,1,1). Safety inventory calculation based on demand forecasting with 90% cycle service level for Jakarta is 42,495 kiloLiter and PT xyz still can reduce products in their storage worth IDR. 341.8 M in Jakarta to maintain the same cycle service level.

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“…Inventory management policies in companies with random demand fluctuations are divided into two categories, namely continuous review policy and periodic review policy. Continuous review policies are more expensive in terms of costs than periodic policies, but continuous checks are very useful for achieving and maintaining the desired level of service from slow moving materials [10].…”

Section: Re-order Pointmentioning

confidence: 99%

Inventory Management and Reorder Point (ROP) Strategy Using ABC Analysis Methods in Textile Manufacture

Umry

Singgih

2019

IJPS

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Tight competition encourages textile companies to increase their competitiveness to efficient in all fields, especially by reducing material stock to its optimum figures without disrupting production operations. Currently this textile manufacture has implemented SAP as an Enterprise Resource Planning (ERP) software. SAP is currently used as Material Resources Planning (MRP), purchasing and inventory control software. Purchases are made automatically using Reorder Point (ROP) and inventory control using the ABC analysis method. In time being there is no relationship between the ABC analysis method to inventory control and ROP. With this condition, the purchase order for material is raised when the stock level is lower than ROP even these unnecessary, causing the stock to become slow moving and dormant when it reaches six months laying on the warehouse and causing excess inventory. This study aims to design and implement how the ABC method can be used to determine purchasing decisions and which ROP calculations should be used. The ABC multi criteria analysis in this study shows that ABC categorization is acceptable for deciding ROP determination. This method of inventory management has the potential to reduce inventory levels up to 17% and eliminate dormant and slow moving.

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Effects on undershoots and lost sales on the cycle service level for periodic and continuous review policies

Cited by 7 publications

References 10 publications

Integrated Modelling of In-Bag Fertilizer Handling Process and Forklift Needs to Reduce Waste in Sales Warehouses of PT Petrokimia Gresik

Integrated Modelling of In-Bag Fertilizer Handling Process and Forklift Needs to Reduce Waste in Sales Warehouses of PT Petrokimia Gresik

Forecast sales volume of aviation fuel in Jakarta using ARIMA Method to support inventory control

Inventory Management and Reorder Point (ROP) Strategy Using ABC Analysis Methods in Textile Manufacture

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