IJIIS: International Journal of Informatics and Information Systems
Vol 4, No 2: September 2021

A Data Mining Practical Approach to Inventory Management and Logistics Optimization

Bambang Pujiarto (Department of Information Technology, Faculty of Engineering, Universitas Muhammadiyah Magelang, Indonesia)
Mukhtar Hanafi (Department of Information Technology, Faculty of Engineering, Universitas Muhammadiyah Magelang, Indonesia)
Arief Setyawan (Department of Information Technology, Faculty of Engineering, Universitas Muhammadiyah Magelang, Indonesia)
Asti Nur Imani (Department of Information Technology, Faculty of Engineering, Universitas Muhammadiyah Magelang, Indonesia)
Eky Rizky Prasetya (Department of Information Technology, Faculty of Engineering, Universitas Muhammadiyah Magelang, Indonesia)



Article Info

Publish Date
01 Sep 2021

Abstract

The latent demand to optimize costs and customer service has been fostered in the current economic situations, characterized by high competitiveness and disruption in supply chains, placing inventories as a vital sector with significant potential to implement improvements in firms. Inventory management that is done correctly has a favorable impact on logistics performance indexes. Warehousing operations account for around 15% of logistics expenditures in terms of dollars. This article employs a method based on the Partitioning Around Medoids algorithm that incorporates, in a novel way, the application of a strategy for locating the optimal picking point based on cluster classification, taking into account the qualitative and quantitative factors that have the greatest impact or priority on inventory management in the company. The results obtained with this model improve the routes of distributed materials based on the identification of their characteristics such as the frequency of collection and handling of materials, allowing for the reorganization and expansion of storage capacity of the various SKUs, moving from a classification by families to a cluster classification. This article shows a suggestion for a warehouse distribution design using data mining techniques, which uses indicators and key qualities for operational success for a case study in a corporation, as well as an approach to improve inventory management decision-making.

Copyrights © 2021






Journal Info

Abbrev

IJIIS

Publisher

Subject

Computer Science & IT

Description

The IJIIS is an international journal that aims to encourage comprehensive, multi-specialty informatics and information systems. The Journal publishes original research articles and review articles. It is an open access journal, with free access for each visitor (ijiis.org/index.php/IJIIS/); ...