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Journal : Journal of Social Research

Control of Key Distribution Material Requirements (MDU) in Meeting the Demand for New Installations and Power Changes in Utility Companies Syaputra, Oktavian; Siswanto, Nurhadi
Journal of Social Research Vol. 4 No. 9 (2025): Journal of Social Research
Publisher : International Journal Labs

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55324/josr.v4i8.2741

Abstract

Inventory control in utility companies is crucial due to its potential to improve the achievement of sales revenue ratios in serving New Connection (PB) and Power Change (PD) requests. In inventory management, accurate demand planning is essential to minimize both excess and shortage of materials. The inaccuracy in calculating inventory parameters for Distribution Main Materials (MDU), especially for PB and PD, is primarily due to the lack of consideration for demand uncertainty, often resulting in stockouts or overstock. This study aims to optimize inventory management and minimize MDU inventory costs based on the company's inventory policy by classifying MDU according to criticality levels ABA, ABB, and ABC. Short-term forecasting is conducted using exponential smoothing or double exponential smoothing, selecting the method with the smallest forecasting error. Inventory parameters are calculated using the Continuous Review (s,S) and Periodic Review (R,s,S) methods, compared against the company's current condition, and the most optimal policy is selected under stochastic demand conditions. After selecting the best parameters among the three policies, total inventory cost and Service Level per MDU are calculated using Material Requirement Planning (MRP) simulation. By applying inventory policy parameters using the Periodic Review method (R,s,S), the total inventory cost and Service Level for each MDU classification (ABA, ABB, ABC) vary, with an average inventory cost of IDR 76 billion for ABA, IDR 3.6 billion for ABB, and IDR 844 million for ABC, and a Service Level of 98%. This allows the company to achieve inventory cost savings of up to 70% within 36 months compared to the current condition.
Co-Authors -, Elisabeth Adhi Iswantoro Adianto, Asyraf Nur Afanda Dwi Ragil Risnavian Agoes Santoso Aguk Zuhdi Muchamad Fathallah Ahmad Rusdiansyah Alfa Muhammad Megawan Ali Reza, Muhammad Andi Irma Arianty Aris Setya Yuwana Asyraf Nur Adianto Asyraf Nur Adianto Atikah Aghdhi Pratiwi Aydin Doğan Aydin Dogan Bachtiar Rosihan Aghda Baihaqy, Ahmed Raecky Cahyono, Beny Danim Musthofa Defriko Christian Dewandhika Dewi Sartika Dewi Sartika Dharma Gita Surya Prayoga Dimas Fajar Prasetyo Effi Latiffianti Eko Nurmianto Elisabeth - Erwin Widodo Erwin Widodo Fakher Shwan Rafeek Faris Zulfar Rosyadi Faris Zulfar Rosyadi Fathallah, Aguk Zuhdi Muhammad Hafidz Ridho Hari Prastowo Hasan Aji Prawira Hasan Aji Prawira Herawatie, Dyah Imam Trio Utama Iwan Febrianto Jamal Ramadhan Jamal Ramadhan Khoirunnisa Mahdiyah Syawalina Khoirunnisa Mahdiyah Syawalina Lutfianto, Muchammad Alfan M. Badrus Zaman Madina Nur Pratiwi Madina Nur Pratiwi Mar'atus Sholihah Maulin Masyito Putri Muhammad Ali Reza Muhammad Badrus Zaman Muhammad Badrus Zaman Muhammad Naufal Bintang Muhammad Naufal Bintang Muhammad Saifulloh Muhammad Saifulloh Muhammadi, Hamdan Musthofa, Danim Nabila Yuraisyah Salsabila Nabila Yuraisyah Salsabila Nugroho, Dwi Oktavianto Wahyu Oryza Akbar Rochmadhan Oryza Akbar Rochmadhan Prasetyo, Dimas Fajar Prawira, Hasan Aji Prayoga, Dharma Gita Surya Priambodo, Bangkit Nadyo Priyanta, Dwi Priyanta, Dwi Retno Widyaningrum Reza Tianto Ridho, Alvin Ichwannur Rizky Agung Sukandar Rochmadhan, Oryza Akbar Salsabila, Nabila Yuraisyah Semin Semin Semin Semin Semin Semin Semin Semin Septian Cahya Shaneza Fatma Rahmadhanty Shaneza Fatma Rahmadhanty Stefanus Eko Wiratno Sukriyah Kustanti Moerad Sukriyah Kustanti Moerad Syaputra, Oktavian Trika Pitana Widodo , Erwin Wolfgang Busse Wolfgang Busse Yani Dhina Mirenani Yani Dhina Mirenani Zaman, Muhammad Badrus Zulaihan, Ahmad Zya Labiba Zya Labiba