SINGLE VENDOR SINGLE BUYER VENDOR MANAGED INVENTORY (VMI) MODEL CONSIDERING PRODUCT WITH SOME OF PARTS

• Main Author: RACHMAT KUMALASIAN NASUTION, ANDRI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46655
• Institution: Institut Teknologi Bandung

This research report contains the supply policy issue with the case of two echelons with one vendor and one buyer. The product being reviewed consists of several interdependent components according to the product structure. The location of the vendor with the buyer is very far and a large product volume requires the vendor to send the product using a large vehicle. If so many products are sent per one-time delivery, the cost of storing at the buyer will be high, conversely, if the product is delivered little by little then the shipping costs will be high. Other obstacles must be considered that the manufacturer has limited warehouse capacity which will cause vendors to deal with excess stock when the product shipped exceeds the buyer's warehouse capacity. The vendor also requires that the delivery of each component must be following the amount sent to each shipment. The model in this study discusses the determination of the number of shipments and product units that must be sent by the vendor by considering these constraints. The aim is to minimize the total system cost. The model was successfully developed and has passed the verification and sensitivity test of the model. The verification test is done by comparing the results of analytic models. There are examples of testing and using models that can be used to understand the use of models in the same case.