THE FORECASTING OF RAW MATERIAL INVENTORY IN SUPPORT OF THE CONTINUITY PRODUCTION PROCESS
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Antonio E L Nyoko(1*)
Program Studi Manajemen, Universitas Nusa Cendana Kupang
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Ronald P C Fanggidae(2)
Program Studi Manajemen, Universitas Nusa Cendana Kupang
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Yohanes Y Marawali(3)
Program Studi Manajemen, Universitas Nusa Cendana Kupang
(*) Corresponding Author
Keywords:
Forecasting, Economic Order Quantity, Safety Stock, Re-Order Point
Abstract
This study aims to calculate the prediction of raw material inventory, the Economic Order Quantity (EOQ), safety stock, and reorder point in support of the continuity production process at a fence manufacturer, CV. Moderen Arsiteknis in Kupang city. Data were analyzed from records of the period 2013–2017 that consist of the annual demand of a product in quantity per unit of time (D), product order cost (S), unit cost (C), holding cost per unit as a fraction of product cost (H), and lead time (L). It is calculated from the forecasting of raw material demand and then computed the Economic Order Quantity (EOQ), safety stock, and reorder point for the next 3 years (2018-2020). The computation of demand forecasts, EOQ, safety stock, and reorder points is intended to smooth the continuity of the production process, reduce the risk of raw material shortages, and minimize the ordering cost and holding cost in CV. Modern Arsiteknis was discussed in the results section.
Keywords: Forecasting; Economic Order Quantity; Safety Stock; Re-Order Point
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References
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Yamit, Z. (2003). Manajemen Kuantitatif untuk Bisnis (Operations Research). BPFE, Yogyakarta.
Zhong, W., & Zhang, L. (2015). The prediction research of safety stock based on the combinatorial forecasting model. 2015 International Conference on Computational Science and Engineering, 200–206.
Zohra Benhamida, F., Kaddouri, O., Ouhrouche, T., Benaichouche, M., Casado-Mansilla, D., & López-de-Ipina, D. (2021). Demand forecasting tool for inventory control smart systems. Journal of Communications Software and Systems, 17(2), 185–196.
Baroto, T. (2002). Perencanaan dan pengendalian produksi. Jakarta: Ghalia Indonesia.
Beutel, A.-L., & Minner, S. (2012). Safety stock planning under causal demand forecasting. International Journal of Production Economics, 140(2), 637–645.
Burinskiene, A. (2022). Forecasting Model: The Case of the Pharmaceutical Retail. Frontiers in Medicine, 9.
Çalışkan, C. (2021). The economic order quantity model with compounding. Omega, 102, 102307.
Cargal, J. M. (2003). The EOQ inventory formula. Mathematical Sciences, 1.
Efrilianda, D. A., & Isnanto, R. R. (2018). Inventory control systems with safety stock and reorder point approach. 2018 International Conference on Information and Communications Technology (ICOIACT), 844–847.
Goltsos, T. E., Syntetos, A. A., Glock, C. H., & Ioannou, G. (2022). Inventory–forecasting: Mind the gap. European Journal of Operational Research, 299(2), 397–419.
Gonzales, J. L., & Gonzales, D. (2014). Analysis of an Economic Order Quantity and Reorder Point Inventory Control Model for a Company. Working Paper, California Polytechnic State University, San Luis Obispo, 12.07.
Haobenu, S. E., Nyoko, A. E. L., Molidya, A., & Fanggidae, R. E. (2021). Perencanaan Persediaan Bahan Baku pada UMK Tiga Bersaudara Kota Kupang dengan Metode Economic Order Quantity (EOQ). Reviu Akuntansi, Manajemen, Dan Bisnis, 1(2), 61–75.
Ikasari, D. M., Lestari, E. R., & Prastya, E. (2018). Inventory control of raw material using silver meal heuristic method in PR. Trubus Alami Malang. IOP Conference Series: Earth and Environmental Science, 131(1), 12024.
Inprasit, T., & Tanachutiwat, S. (2018). Reordering point determination using machine learning technique for inventory management. 2018 International Conference on Engineering, Applied Sciences, and Technology (ICEAST), 1–4.
Irmayanti, H. (2019). Analysis of raw material ordering with economic order quantity method. IOP Conference Series: Materials Science and Engineering, 662(3), 32011.
Korponai, J., Tóth, Á. B., & Illés, B. (2017). Effect of the Safety Stock on the Probability of Occurrence of the Stock Shortage. Procedia Engineering, 182, 335–341.
Kot, S., & Grondys, K. (2011). Theory of inventory management based on demand forecasting. Polish Journal of Management Studies, 3(1), 147–155.
Kourentzes, N., Trapero, J. R., & Barrow, D. K. (2020). Optimising forecasting models for inventory planning. International Journal of Production Economics, 225, 107597.
Leseure, M. (2010). Key concepts in operations management. Key Concepts in Operations Management, 1–312.
Lesmana, E., Subartini, B., & Jabar, D. A. (2018). Analysis of forecasting and inventory control of raw material supplies in PT INDAC INT’L. IOP Conference Series: Materials Science and Engineering, 332(1), 12015.
Li, L. (2007). Supply Chain Management: Concepts, Techniques and Practices: Enhancing the Value through Collaboration. World scientific publishing company.
Martins, J. A., & da Cruz, J. A. (2018). Demand forecasting: proposal of a model for a glass tempering industry. Independent Journal of Management & Production, 9(5), 716–731.
Mathew, A., Nair, E. M. S., & Joseph, J. (2013). Demand forecasting for economic order quantity in inventory management. International Journal of Scientific and Research Publications, 3(10), 2250–3153.
Mekel, C., Anantadjaya, S. P. D., & Lahindah, L. (2014). Stock out analysis: An empirical study on forecasting, re-order point and safety stock level at PT Combiphar, Indonesia. RIBER: Review of Integrative Business and Economics Research, 3(1), 52–64.
Mesjasz-Lech, A. (2011). Forecasting Of Demand For Direct Production Materials As The Element Of Supply Logistics Of Thermal Power Plants. LogForum, 7(2).
Mokhtari, H. (2018). Economic order quantity for joint complementary and substitutable items. Mathematics and Computers in Simulation, 154, 34–47.
Muqtadiroh, F. A., Syofiani, A. R., & Ramadhani, T. S. (2015). Analisis Peramalan Penjualan Semen Non-Curah (ZAK) PT Semen Indonesia (Persero) Tbk Pada Area Jawa Timur. Seminar Nasional Teknologi Informasi Dan Komunikasi, 308–310.
Nobil, A. H., Sedigh, A. H. A., & Cárdenas-Barrón, L. E. (2020). Reorder point for the EOQ inventory model with imperfect quality items. Ain Shams Engineering Journal, 11(4), 1339–1343.
Pang, H. E., Chandrashekar, R., & Muda, W. H. N. W. (2019). Forecasting and economic order quantity model for inventory control: A case study at XYZ company. AIP Conference Proceedings, 2184(1), 40007.
Plinere, D., & Borisov, A. (2015). Case study on inventory management improvement. Information Technology and Management Science, 18(1), 91–96.
Rizaldi, A., Dilianaputri, A., Anugrah, F. A., Ummaya, R., & Bahagia, N. (2018). An economic order quantity model with continous quantity discount and probabilistic demand. 2018 5th International Conference on Industrial Engineering and Applications (ICIEA), 484–489.
Salu, N. D., & Nyoko, A. E. L. (2018). Pengendalian Persediaan Bahan Baku Papan Jati Pada Cv. Murah Jaya Meubel Di Kota Kupang. Jurnal Transformatif Unkriswina Sumba, 8(1), 15–24.
Soares, M. E., Fanggidae, R. P. C., & Nyoko, A. E. L. (2019). Analisis Manajemen Persediaan Bahan Baku Papan Jati Produksi Meubel Pada Pesona Meubel Atambua. Journal of Management Small and Medium Enterprises (SMEs), 8(1), 35–43.
Sofyan, D. K., Chalirafi, M., & Sayuti, M. (2017). Forecasting Of Optimal Raw Material Supplies For Paving Block Making In UD. Karya Jaya. International Conference on Public Policy, Social Computing and Development 2017 (ICOPOSDev 2017), 219–226.
Xi, J., & Sha, P. B. (2014). Research on optimization of inventory management based on demand forecasting. Applied Mechanics and Materials, 687, 4828–4831.
Yamit, Z. (2003). Manajemen Kuantitatif untuk Bisnis (Operations Research). BPFE, Yogyakarta.
Zhong, W., & Zhang, L. (2015). The prediction research of safety stock based on the combinatorial forecasting model. 2015 International Conference on Computational Science and Engineering, 200–206.
Zohra Benhamida, F., Kaddouri, O., Ouhrouche, T., Benaichouche, M., Casado-Mansilla, D., & López-de-Ipina, D. (2021). Demand forecasting tool for inventory control smart systems. Journal of Communications Software and Systems, 17(2), 185–196.
Published
2023-11-01
How to Cite
Nyoko, A., Fanggidae, R., & Marawali, Y. (2023). THE FORECASTING OF RAW MATERIAL INVENTORY IN SUPPORT OF THE CONTINUITY PRODUCTION PROCESS. Journal of Management : Small and Medium Enterprises (SMEs), 16(3), 517-530. https://doi.org/10.35508/jom.v16i3.12633
Section
Articles
