Publication Date: 2023/12/08
Abstract: Tight competition encourages every company to increase its competitiveness by making efficiency in all fields, one of which is by controlling inventory in the company by optimizing warehousing costs, availability of raw materials and products. At the same time by avoiding interruptions in the production flow. As one of the companies that produces car engines, the company optimizes inventory to meet consumer demand and avoid production stops. The problem that occurs in this company is that only 20% of the components have the amount of stock that is in accordance with the company's planning. Based on these problems, there is a need for proper classification of component and inventory policy to minimize the occurrence of excess stock experienced by the company. In this study, component classification is using ABC and XYZ analysis. In addition, the company needs to determine its stock level, reorder components using the Reorder Point (ROP) method, and optimize the number of orders ordered for each part with Economic Order Quantity (EOQ). The results of this study obtained a grouping of components for classes A = 15 components, B = 18 components and C = 78 components and X = 86 components, Y = 8 components and Z = 17 components. By improving the ROP and EOQ values, the company can optimize inventory by reducing the amount of inventory by 9.1 billion.
Keywords: Inventory, ABC analysis, XYZ analysis, Reorder point (ROP), Economic Order (EOQ).
DOI: https://doi.org/10.5281/zenodo.10297300
PDF: https://ijirst.demo4.arinfotech.co/assets/upload/files/IJISRT23NOV2080.pdf
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