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Journal : Business Review and Case Studies

Inventory System Design For PT Mechanical Electrical Provider Muhamad Noer Rahman Aziz; Erlinda Yunus
Business Review and Case Studies Vol. 4 No. 2 (2023): BRCS, Vol 4 No 2, August 2023
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/brcs.4.2.195

Abstract

PT Mechanical Electrical Provider (an alias name, henceforth MEP) is a company that focuses on the telecommunications sector as a mechanical & electrical supplier. It was found that the company was still experiencing inventory problems, such as needing more goods and excess goods from its inventory system. Therefore, this study aims to analyze the inventory problems and provides recommendations for the inventory system design. This study uses a qualitative approach by interviewing five officers and staffs in the Procurement Division. Next, this study uses fishbone analysis to find the causes of the problems faced by PT MEP. The Fishbone diagram shows several causes of the inventory problems: people, equipment, method, and material causes. This study uses the quantitative approach by applying the ABC Classification to determine the classification of each item and the best way to control it. There are 6 A-class items, 14 B-class items, and 21 C-class items pada PT MEP. From the ABC classification, A-class products use the Continuous Review Model (Q-system) calculation for an optimal amount and the right time of replenishing inventory. For class B and C classification, the design suggests a Periodic Review Model (P-system) to find the optimal amount for refilling using the difference between the target inventory and the amount of inventory at the time of checking. Through the new system, this research expects a more optimal inventory so that the company can reduce the cost losses incurred so far. Keywords: ABC classification, Continuous Review Model (Q-system), Fishbone Diagram, Periodic Review Model (P-system), Telecommunication
Procurement Strategy for Organic Coconut Sugar: Case Study of XYZ Company Eva Saputri Murwaningrum; Erlinda Nusron Yunus
Business Review and Case Studies Vol. 5 No. 1 (2024): BRCS, Vol 5 No 1, April 2024
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/brcs.5.1.103

Abstract

This study aimed to develop an effective procurement strategy to ensure the supply of PT XYZ's organic coconut sugar in 2023-2025. PT XYZ was a manufacturing company that focused on providing added value to natural commodities produced by farmers in Indonesia. The demand for organic coconut sugar increased every year. However, there were obstacles in procuring organic coconut sugar in terms of farmers' supply capabilities and suitability of specifications. To determine the procurement strategy for organic coconut sugar that could be developed by PT XYZ, an analysis of the sourcing strategy was carried out using the Kraljic Portfolio Matrix method. Organic coconut sugar material was in the strategic material quadrant with high supply risk and high-profit impact. The partnership strategy was the best choice for PT XYZ in 2023-2025, which solved company problems and could also be a productivity improvement solution for companies in Indonesia. Keywords: coconut sugar organic, kraljic portfolio matrix, procurement strategy, coconut sugar productivity, supply risk
The Procurement Strategy for Recycled Paper: Case Study at PT. Kertas Makmur Abadi (PT KMA) Maria Cynthia; Erlinda Yunus
Business Review and Case Studies Vol. 5 No. 2 (2024): BRCS, Vol 5 No 2, August 2024
Publisher : School of Business, IPB University (SB-IPB)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17358/brcs.5.2.223

Abstract

Background: Procurement practices nowadays has transcended from merely operational to a strategic objective in business. Studies have shown that procurement strategy create optimal value, increase competitiveness, and company resiliency during crisis if it is aligned with the overall organization's strategy, vision, goals, and value proposition to achieve company goals.Purpose: This research aims to develop a sustainable procurement strategy to ensure the availability of PT Kertas Makmur Abadi (an alias, hereafter named PT KMA)’s recycled paper in 2024-2026. Design/methodology/approach: This study used qualitative methods as the basis of research methods, namely questionnaires, interviews, observation, and analytical studies with existing theories. To ensure the availability of recycled paper, the company had to design a procurement strategy starting with determining the criteria used to select and evaluate suppliers. The determination of criteria was carried out using a pairwise comparison technique suggested by the Analytical Hierarchy Process. The design of the recycled paper procurement strategy was obtained from procurement portfolio analysis and market analysis using the Kraljic Portfolio Matrix method.Findings/results: The results showed that recycled paper was a strategic material with high supply risk and profit impact, and therefore needed a partnership strategy. This study further resulted in a partnership strategy that comprised three procurement programs: exploitation, balanced, and diversification.Conclusion: Therefore, the three programs are the most appropriate in procuring recycled paper for PT KMA for the 2024-2026 period to ensure the continued availability of PT KMA recycled paper.Originality/value (State of the art): The current state of research emphasizes integrating advanced analytical methods like AHP and the Kraljic Portfolio Matrix with sustainability principles to develop an effective procurement strategy. The strategy addresses recycled paper's supply risk and profit impact and sets the foundation for sustainable procurement practices within organizations. Keywords: analytical hierarchy process, kraljic portfolio matrix, procurement strategy recycled paper, sustainable procurement