INVENTORY MANAGEMENT IMPROVEMENT FOR TELECOMMUNICATION TOWER ACCESSORIES AT PT BAGJA MULIA TECHNOLOGIES (BMTEC)

• Main Author: Nasya Amani, Shafira
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72710
• Institution: Institut Teknologi Bandung

BMTec is a telecommunication infrastructure manufacturer. They produce tower accessories made of steel materials with various fabrication processes. The ineffectiveness of their current inventory management system has driven them to stockpile raw materials, which results in reducing the material quality in the form of corrosion and obsolescence. It brings up the question regarding how to improve the inventory management in the company, then drove the research to compare the effectiveness of BMTec’s current inventory management with the new-preferred inventory model. To analyze, primary data is gathered, accompanied by semi-structured interviews for the additional empirical data. An ABC classification is used to distinguish the crucial items, which results in the telecommunication tower harmonica fence as the most crucial product in BMTec. Demand forecasting is applied based on the pattern of historical demand data. The Winters’ Method was chosen due to the ability to adjust the seasonality and trend factor, although the forecasting inaccuracy reached 4.7 (MAD) and 78.4% (MAPE). By comparing the inventory costs over the current company’s method and MRP with three lot sizing techniques, analysis shows that the MRP model with POQ lot sizing could save BMTec’s inventory cost in 2022 by up to 80.85%.