TY - JOUR
T1 - Designing Inventory Models to Minimize Total Inventory Costs by Using Mixed Integer Linear Programming (MILP) in the Warehouse of MRO Materials
AU - Kusuma, R. I.
AU - Hakim, I. M.
N1 - Funding Information:
This work is supported by the 2020 PUTI Proceedings Grant funded by the University of Indonesia DRPM Number: NKB-1147 / UN2.RST / HKP.05.00 / 2020.
Publisher Copyright:
© Published under licence by IOP Publishing Ltd.
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/12/28
Y1 - 2020/12/28
N2 - In this study, the problem that happen in the object of research is the company's target which is Inventory Turn Over. These problems occur because the companies tend to decide to store materials in large quantities so there is no potential for material shortages that can disrupt maintenance activities. However, the large amount of storage creates risks such as high holding costs and the risk of damage. One way to solve inventory management problems is to make efficient decisions on order quantity (Q) and message time (T) so that a minimum total inventory cost is obtained without hampering maintenance activities. To achieve that, the method used in this study is ABC classification to determine the material classification that needs to be prioritized and Mixed Integer Linear Programming (MILP) to get a minimum total inventory cost. From this research, it is known that there are 9 types of materials that fall into category A out of 150 types. In addition, the total quantity of order (Q) and order time (T) results of the model is able to minimize the total inventory cost to IDR127,610,000.
AB - In this study, the problem that happen in the object of research is the company's target which is Inventory Turn Over. These problems occur because the companies tend to decide to store materials in large quantities so there is no potential for material shortages that can disrupt maintenance activities. However, the large amount of storage creates risks such as high holding costs and the risk of damage. One way to solve inventory management problems is to make efficient decisions on order quantity (Q) and message time (T) so that a minimum total inventory cost is obtained without hampering maintenance activities. To achieve that, the method used in this study is ABC classification to determine the material classification that needs to be prioritized and Mixed Integer Linear Programming (MILP) to get a minimum total inventory cost. From this research, it is known that there are 9 types of materials that fall into category A out of 150 types. In addition, the total quantity of order (Q) and order time (T) results of the model is able to minimize the total inventory cost to IDR127,610,000.
UR - http://www.scopus.com/inward/record.url?scp=85098891883&partnerID=8YFLogxK
U2 - 10.1088/1757-899X/1003/1/012100
DO - 10.1088/1757-899X/1003/1/012100
M3 - Conference article
AN - SCOPUS:85098891883
SN - 1757-8981
VL - 1003
JO - IOP Conference Series: Materials Science and Engineering
JF - IOP Conference Series: Materials Science and Engineering
IS - 1
M1 - 012100
T2 - 2nd International Conference on Industrial and Manufacturing Engineering, ICI and ME 2020
Y2 - 3 September 2020 through 4 September 2020
ER -