Journal of Industrial Engineering
Vol 3, No 1 (2018)

Designing of Inventory Control for Aluminum Industry

Ineu Widaningsih Sosodoro (President University)
Anastasia Lidya Maukar (President University)
Intan Puspita Pribadi (President University)



Article Info

Publish Date
12 Nov 2018

Abstract

Inventory is one of important factors in manufacturing industry to ensure production process run. This research was conducted in an aluminum ingot manufacture company. The company faces a problem to manage the inventory system for their main raw material. The problem deals with the high expenditure due to safety stock that causes high inventory cost. Total inventory cost based on current condition is $270,706 per year. The proposed improvement method that used in this analysis is continuous review system. This method is applied to determine the appropriate Reorder Point (ROP) and to minimize the inventory cost. Based on the proposed improvement, total inventory cost can be reduced by 30%. This proposed system is also equipped with Decision Support System by using what-if analysis method as the tool to make decision for the next several periods by giving several scenarios and considering the aspects that influence to decision.Keywords: Inventory, Reorder point, Continuous Review System, Decision Support System, What If Analysis, Scenario

Copyrights © 2018






Journal Info

Abbrev

journalofIndustrialEngineerin

Publisher

Subject

Industrial & Manufacturing Engineering

Description

JIE: Journal of Industrial Engineering (Online ISSN: 2527-4139; Printed ISSN 2503-3670) is a scientific journal in the field of industrial engineering that publishes scientific writings on pure and applied research in industrial system, including (but not limited to): Production system, Inventory ...