3 research outputs found
INVENTORY POLICY DETERMINATION FOR RAW MATERIALS IN ILY PHARMACEUTICAL USING PERIODIC REVIEW (R, s, S) AND PERIODIC REVIEW (R, S) METHOD TO MINIMIZE TOTAL INVENTORY COST
No full textILY Pharmaceutical is one of the pharmaceutical industry in Bandung that is manufacturing various type of medicines that will be distributed to fulfill the demands of all health units associated with Indonesian Army all over Indonesia. The problem faced by ILY Pharmaceutical is regarding the inventory of raw materials, the stock is always way bigger than the demand thus causing overstock. This is because ILY Pharmaceutical does not have an exact calculation for the order quantity and maximum inventory level that is needed to help managing the inventory of raw materials in the warehouse. In this research, the raw materials will be classified into category A, B and C, the A category then will use periodic review (R, s, S) while the B, and C category will use periodic review (R, S) method. The objective of this research is to minimize the total inventory cost. The calculation results show that by using periodic review (R, s, S) and periodic review (R, S), the total inventory cost can be lowered by 42% from 7.029,29
Inventory Policy Determination for Raw Materials in ILY Pharmaceutical using Periodic Review (R, s, S) and Periodic Review (R, S) Method to Minimize Total Inventory Cost
No full textILY Pharmaceutical is one of the pharmaceutical industry in Bandung that produces various type of medicines. In managing the raw materials for production, ILY Pharmaceutical is not using any standardize calculation for the inventory policy of the raw materials. That condition caused the raw materials to be overstocked and made the total inventory cost to be higher. The objective of this research is to minimize the total inventory cost in ILY Pharmaceutical by giving an inventory policy proposal. Based on the classification of the raw materials using ABC analysis, two inventory policy will be used. Periodic review (R, s, S) for A category and periodic review (R, S) for B and C category. The proposed inventory policy able to reduce the total inventory cost by 42% from 7.029,29. The reduced cost is mainly caused by the quantity of the raw materials that is stored in the warehouse is smaller than the existing condition. Even though the frequency of the order is increased thus increasing the order cost but the quantity ordered is smaller because in the proposed condition, there are a maximum inventory level so, the quantity ordered cannot exceed that level
Inventory Policy Determination for Raw Materials in ILY Pharmaceutical using Periodic Review (R, s, S) and Periodic Review (R, S) Method to Minimize Total Inventory Cost
No full textILY Pharmaceutical is one of the pharmaceutical industry in Bandung that produces various type of medicines. In managing the raw materials for production, ILY Pharmaceutical is not using any standardize calculation for the inventory policy of the raw materials. That condition caused the raw materials to be overstocked and made the total inventory cost to be higher. The objective of this research is to minimize the total inventory cost in ILY Pharmaceutical by giving an inventory policy proposal. Based on the classification of the raw materials using ABC analysis, two inventory policy will be used. Periodic review (R, s, S) for A category and periodic review (R, S) for B and C category. The proposed inventory policy able to reduce the total inventory cost by 42% from 7.029,29. The reduced cost is mainly caused by the quantity of the raw materials that is stored in the warehouse is smaller than the existing condition. Even though the frequency of the order is increased thus increasing the order cost but the quantity ordered is smaller because in the proposed condition, there are a maximum inventory level so, the quantity ordered cannot exceed that level
