The condition of risk control failure causes many consumer complaints because many defective products are found with purchase orders for iron pipes. Storage management is very important for companies in maintaining quality and delivery accuracy for customer satisfaction. At this stage, there is a definite risk of failure from finished product control, such as material handling errors and product damage due to storage. The purpose of this research is to develop a failure risk control model in the finished goods inventory system. Iron Pipe defects are caused by poor material handling and product storage in the company. Exogenous variables from this simulation are the reliability of product handling, percentage of successful rework, and percentage of deteriorated product. The simulation results show that the optimistic scenario has the smallest defect of 0% and is followed by a most likely scenario of 1% and a pessimistic scenario of 4%. The resulting model can minimize the risk of failure of iron pipe products in finished goods warehouses, and the model can be applied in more complex real-world cases.
- Deteriorated percentage of success rework
- Optimistic scenario
- Product handling