Joint Replenishment Problem for Multi Supplier One Regional

Laila Nafisah, Ahmad Muhsin, Bekti Sulistiyani, Yuni Siswanti

2019

Abstract

PT XYZ is a company that produces various bags with leather as its basic material. Request for bag accessories as supporting raw material is uncertain (probabilistic). In view of accessories requests in the monthly report of 2017 until 2018, there was out of stock to the value of 44%. Accessories request is not performed in the unit, but only several accessories needed at that time. In consequence, after order is submitted, request for additional accessories is added and makes the total request and order imbalance. The order which is submitted several times in one month may increase inventory cost. Moreover, this research uses the Joint Replenishment Order Method, which aims to control accessories stock. This method tries to design control for the stock by taking into account request (Di), service level, and company's expense. The first step of this method is determining the time between the order of each accessory(Ti), and then determining the interval of basic order (T) in order to specify order optimal time (T*). After the optimal time is specified, the quantity (Q), which will be ordered to the supplier, also safety stock and inventory level for each item can be known. Stock control design will obtain the result of minimal inventory total cost. Result of Joint Replenishment Order Method Calculation shows obtained order optimal time (T*) of 0,3558 years with the total cost to the value of Rp50.863.488; thus, in one year the obtained total cost is Rp152.590.465 per year, while expenses with company method are to the value of Rp198.411.763. The company can save cost up to Rp45.821.297 or 23% with this method.

Paper Citation

in Harvard Style

Nafisah L., Muhsin A., Sulistiyani B. and Siswanti Y. (2019). Joint Replenishment Problem for Multi Supplier One Regional.In Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM, ISBN 978-989-758-471-8, pages 401-411. DOI: 10.5220/0009958604010411

in Bibtex Style

@conference{icbeem19,
author={Laila Nafisah and Ahmad Muhsin and Bekti Sulistiyani and Yuni Siswanti},
title={Joint Replenishment Problem for Multi Supplier One Regional},
booktitle={Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,},
year={2019},
pages={401-411},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009958604010411},
isbn={978-989-758-471-8},
}

in EndNote Style

TY - CONF

JO - Proceedings of the International Conference of Business, Economy, Entrepreneurship and Management - Volume 1: ICBEEM,
TI - Joint Replenishment Problem for Multi Supplier One Regional
SN - 978-989-758-471-8
AU - Nafisah L.
AU - Muhsin A.
AU - Sulistiyani B.
AU - Siswanti Y.
PY - 2019
SP - 401
EP - 411
DO - 10.5220/0009958604010411