INVENTORY PLANNING WITH MULTI-ITEM ORDER REQUIREMENT (CASE STUDY AT PT MARI JAYA)

Luthfi, Muhammad Fikri Shadiq (2024) INVENTORY PLANNING WITH MULTI-ITEM ORDER REQUIREMENT (CASE STUDY AT PT MARI JAYA). S1 thesis, Universitas Andalas.

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Abstract

A controlled inventory flow is indispensable for the sustainability of a company, as it protects the company from risks of hampered production, stockout, and any other uncertainties. PT Mari Jaya is a distributor of cooking oil, margarine, and flour. Each of them consists of several brands and has a joint order requirement that may consist of any desired combination of brands in an ordered product type. Cooking oil products consist of three brands: Fortune, Sovia, and Siip, margarines consist of four brands: Fortune margarine, Fortune cream, Fortune shortening, and Siip margarine, and Flours consist of eight brands: Lonceng Hijau, Tegu, Lonceng Biru, Perdana, Peacock Biru, Mila, Lonceng Merah, and Mila Mie, which makes in total of 15 different brands that stored in Mari Jaya’s warehouse. Each type of product is supplied by the same supplier which have to be ordered by the multiple of 1300, 1400, and 950 units for cooking oils, margarines, and flour products in that order. Their inventory needs to be controlled to ensure that the demand is fulfilled. This study compares three scenarios: order each brand individually, jointly order with each order includes all brands, and jointly order all brands with selected subset, and the best scenario is simulated into the actual demand data with three different inventory control model: min-max model, Q model, and T model. The result is T model is the best model for margarine and flour products order plan with 8.084% and 31.482% less cost than the actual, while the actual company’s plan is still the best for cooking oil products.

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