Gunawan, Robertus Willy (2015) Improvement of inventory control systems for raw material in a make-to-order company. Undergraduate thesis, Institut Teknologi Sepuluh Nopember.
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Abstract
In any manufacturing industry, inventory is always an important part to be
controlled; companies have to design a system that is able to avoid stock outs
while keeping the stock at minimum. Nonetheless, to some extents, managing
inventory is utterly complicated. In many cases, companies turn into fiasco when
they design an efficient inventory control system, especially for make-to-order
companies which deal with extremely high demand uncertainty. In this paper,
several inventory control systems such as continuous review (s, Q system) and
periodic review (R, s, S system) are investigated and compared to the existing
inventory control system in the company. The objective is to obtain a better
inventory control system for every raw material category in terms of total cost and
service level. At the very first phase, considering usage volume and the coefficient
of variance, several raw material samples are taken. This research develops a
Monte Carlo simulation for generating probabilistic demand and shipment lead
time. In carrying out simulation for generating demand, author uses several
replications to evade improper results, which could lead to wrong decisions. Each
scenario for inventory control system is evaluated in terms of total cost and
service level. Heuristic methods for both continuous and periodic inventory
control systems are also used to test the sensitivity of the parameters. This paper
brings an important recommendation to the company as well as insight for maketo-
order companies in general. Since cost is the ultimate output for profit-based
companies including Karya Makmur Baru, Ltd., the proposed inventory control
system for each raw material category could be implemented by the company as a
means to reduce the total inventory cost while maintaining the service level target.
The inventory cost reduction ranges from 39.69% to 72.85%, with the minimum
service level of 98.48%.
| Item Type: | Thesis (Undergraduate) |
|---|---|
| Additional Information: | RSI 658.787 Gun i |
| Uncontrolled Keywords: | Continuous review, Heuristic method, Inventory control system, Make-to-order company, Monte Carlo simulation, Periodic review |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD55 Inventory control |
| Divisions: | Faculty of Industrial Technology > Industrial Engineering > 26201-(S1) Undergraduate Thesis |
| Depositing User: | - Taufiq Rahmanu |
| Date Deposited: | 04 Nov 2019 07:42 |
| Last Modified: | 04 Nov 2019 07:42 |
| URI: | http://repository.its.ac.id/id/eprint/71583 |
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