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Journal : Industrial and Systems Engineering Assessment Journal (INASEA)

BACKORDER RAW MATERIAL INVENTORY CONTROL SYSTEM WITH LEAD TIME AND ORDERING COST REDUCTION: CASE STUDY PT ICI PAINTS INDONESIA Amran, Tiena Gustina; Lesmono, Dinar Suryo
Industrial and Systems Engineering Assessment Journal (INASEA) Vol 12, No 2 (2011): INASEA Vol. 12 No. 2
Publisher : Industrial and Systems Engineering Assessment Journal (INASEA)

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Abstract

This research investigates the continuous review inventory model involving variable lead time with partial backorders, where the amount is uncertain. PT ICI Paints Indonesia is one of chemical industries which produced paint. The main problems faced by company are often occur stock out and also over stock of raw material replenishment, and the second case is raw material ordering lead time which can’t be controlled and determined its extent so the company more depend on the supplier policy. The purpose of this research is to suggest the optimal raw material inventory system alternatives synchronized with the stock out characteristics and the condition can be occurred. Besides, the backorder raw material inventory control can reduce lead time and raw material ordering cost. After the calculation, the optimal solution of inventory models can be obtained; those are with backorder condition which produced the annual inventory total cost amount of 15.069.845.628, 27 rupiahs; which mean it just effectively save inventory cost by 5, 81% for the company.
PEMILIHAN PEMASOK KOMPONEN OTOMOTIF DENGAN ANALYTICAL HIERARCHY PROCESS DAN BENCHMARKING Amran, Tiena Gustina
Industrial and Systems Engineering Assessment Journal (INASEA) Vol 13, No 1 (2012): INASEA Vol. 13 No. 1
Publisher : Industrial and Systems Engineering Assessment Journal (INASEA)

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Abstract

The trend of global manufacturing era (world class manufacturing) is partnership and long term cooperation. In the automotive industry, component and part supply chain structure is closely linked, so the quality of the supplier determines the quality of the final product. Global manufacturing quality benchmarking approach is used to improve the quality of the automotive component industry from domestic suppliers (local content). The purpose of this study is to assess the supplier in accordance to a predetermined quality to be a potential partner. The study was conducted for six groups of suppliers: engine component manufacturers, steering and suspension, car accessories, electric, chassis and tires. The assessment criteria consist of price, flexibility, quality, delivery, and services. Data were collected from 20 automotive components suppliers with check lists, interviews and direct observation to the factory. Determination of the weight of the assessment is done using Analytical Hierarchy Process (AHP) method. By conducting priority sequencing, the benchmarking of six groups of suppliers of automotive components and best supplier selection can be done. In addition, the benchmarking process of a supplier that can serve as a best practices process is also obtained.