APPLICATION OF MULTIPLE PRODUCT LOT SIZING MODELS AND CYCLE COUNTING POLICY IN IMPROVING THE INVENTORY MANAGEMENT OF CV. PUTRA PRIMA

• Main Author: Christian (19015045), Ivan
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28178
• Institution: Institut Teknologi Bandung

CV. Putra Prima is a steel wholesaler operating in Bandung area, supplying steel to a broad range <br /> <br /> of customers. Being a part a rapidly growing industry with a high potential for growth as well as <br /> <br /> threat from competition, CV. Putra Prima is operating with a number of problem concerning their <br /> <br /> inventory management. They currently have no inventory model to use for calculating; safety <br /> <br /> stock, reorder point and lot size, and additionally to keep their record accuracy. Like many <br /> <br /> business CV. Putra Prima have most of their asset invested in their inventory. A well-managed <br /> <br /> inventory should be able to maximize profitability while minimizing cost. Being a wholesaler, <br /> <br /> CV. Putra Prima’s has high level of inventory that worth for a high cash value, meaning any <br /> <br /> mistake concerning their inventory may cost them a huge loss. Therefore, this research intended <br /> <br /> to generate a new policy for CV. Putra Prima to apply to their inventory management. The data – <br /> <br /> past sales, costs, product price, service level, and supplier – necessary for this research will be <br /> <br /> obtained directly from the company. After analyzing the available data, this research has come <br /> <br /> up with an applicable lot sizing model and cycle counting policy. The most cost-effective way for <br /> <br /> CV. Putra Prima in doing future procurement, is to aggregate multiple product with lots ordered <br /> <br /> and delivered jointly for a subset of products. Using subset model CV. Putra Prima will be able <br /> <br /> to have their total annual cost as low as IDR 1,175,773,359.73 while still having a total of <br /> <br /> 1,498,049 unit of items in their inventory annually. Presently CV. Putra Prima is experiencing an <br /> <br /> overall understock costing as much as IDR 1,492,653,700.00. Lastly, cycle counting policy is a <br /> <br /> feasible means to keep high record accuracy between their system record and actual on-hand <br /> <br /> inventory. Using cycle counting policy CV. Putra Prima only need to perform checking on eight <br /> <br /> products each single day to keep make sure their records are as accurate as possible.