Simulation Study Of Cement Distribution Considering Stock Criticality And Shipment Due-Date

Kantari, Lala Ayu (2017) Simulation Study Of Cement Distribution Considering Stock Criticality And Shipment Due-Date. Undergraduate thesis, Institut Teknologi Sepuluh Nopember.

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The expansion of Indonesia’s infrastructure will effect to the increasing of cement sales. It is very optimistic that cement demand in Indonesia will rise significantly. PT.X is one of the leading cement producer in Indonesia which has two methods of delivery, sea transportation and land transportation using trucks. The utilization of land transportation of PT.X is more dominant than the sea transportation. Thus, the optimization for land transportation in PT.X is highly recommended due to its high frequency.
One of the problem in PT.X is the market of PT.X often run out of stock condition while there are plenty of stock in the plant. the current condition is the distribution order will be directly released after the order is received by the plant and delivered based on the earliest estimated due date of the delivery request. Moreover, there are no visibility of information between the plant and the distributor and the availability of the truck cannot be predicted due to the uncertainty of cycle time. This research aim to optimize the distribution of the cement using Vendor Managed Inventory (VMI) model which consider the visibility of information between plant and distributor. The method in this research is conducting a simulation study which considers the stock criticality of each distributor as the trigger of releasing the order.
By considering the stock criticality of each market will increase the product availability, increase the percentage of on-time delivery, and maintain the utilization of the truck. By using the same dispatching rule with additional number of the truck, the simulation process results in higher fill rate, lower truck utilization, and higher rate of on-time delivery. The suggested scenario is scenario 7 with fill rate 81.3%, truck utilization 31.6%, and on-time delivery 32.5%. Scenario 7 utilizes 300 trucks and implement stock criticality method.

Item Type: Thesis (Undergraduate)
Uncontrolled Keywords: ARENA simulation, cement distribution, shipment due date, stock criticality, Vendor Managed Inventory
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Industrial Technology > Industrial Engineering > 26201-(S1) Undergraduate Thesis
Depositing User: LALA AYU KANTARI
Date Deposited: 24 Mar 2017 03:58
Last Modified: 05 Mar 2019 08:34

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