ABC ANALYSIS, FORECASTING AND ECONOMIC ORDER QUANTITY (EOQ) IMPLEMENTATION TO IMPROVE SMOOTH OPERATION PROCESS

Main Article Content

Thukas Shilul Imarah
Roni Jaelani

Abstract

The study aims to test the effectiveness of the implementation of several inventory control methods to improve the smooth operation in a trading company of industrial equipements components that have difficulty in maintaining inventory data accuracy, inventory shortages and in other hand excess unrequired inventory. The research data used is taken from the ERP report data and manual reports created by the perpetrators of the operational activities of the Inventory Control for the period 2016 - 2018. The sampling method used is purposive sampling of the product sales data in years 2016 – 2018  as much as 2498  Stock  Keeping Unit (SKU) which is then  processed using the method of ABC analysis and  FSN (Fast Moving, Slow Moving and None Moving) analysis to get  10  SKUs that belongs to the category A and  F (Fast Moving) group as a sample of research. The research method uses the Quantitative method with the use of ABC analysis, Forecasting and Economic Order Quantity. The results shows that the implementation of ABC analysis effectively reduced the workload of periodic counting and is able to improve data accuracy to be higher level. The exponential smoothing forecast method shows the least gap to the actual value and EOQ effectively optimizes ordering and holding costs and reduces the risk of failure in Inventory Control and positively affects the smoothness of the operation process.

Article Details

How to Cite
Shilul Imarah, T., & Roni Jaelani. (2020). ABC ANALYSIS, FORECASTING AND ECONOMIC ORDER QUANTITY (EOQ) IMPLEMENTATION TO IMPROVE SMOOTH OPERATION PROCESS. Dinasti International Journal of Education Management And Social Science, 1(3), 319-325. https://doi.org/10.31933/dijemss.v1i3.149
Section
Articles

References

Atnafu, D., & Balda, A. (2018). The impact of inventory management practice on firms' competitiveness and organizational performance: Empirical evidence from micro and small enterprises in Ethiopia.
Devarajan, D., & Jayamohan, M. S. (2015). Stock control in a chemical firm: combined FSN and XYZ analysis.
Devarajana, D., & Jayamohanb, M. S. (2015). Stock control in a chemical firm: combined FSN and XYZ analysis.
Eksler, L., Aviram, R., Elalouf, A., & Kamble, A. (2018). An EOQ Model for multiple products with varying degrees of substitutability.
Guga, E., & Musa, O. (2015). Inventory Management Through Eoq Model A Case Study Of Shpresa Ltd, Albania.
Heizer, Render, & Munson. (2017). Operation S Management, Sustainability and Suppli Chain Management - 12 Edition.
Huang, J.-C., Wu, T.-J., & Lu, Y.-C. C. (2017). Improvement of Inventory Control and Forecast According to Activity-Based Classifications: T Company as an Example.
Kaloji, P. P. (2018). A Study on Inventory Management and Its Impact onProfitability in Foundry Industry at Belagavi,Karnataka.
Kontuš, E. (2014). Management Of Inventory In A Company.
Kritchanchai, D., & Meesamut, W. (2015). Developing Inventory Management in Hospital.
Kusumastuti, D. Peranan Manajemen Logistik dalam Organisasi Publik.
Mahagaonkar, S. S., & Kelkar, A. A. (2017). Application of ABC Analysis for Material Management of a Residential Building.
Rangkuti, F. (2000). Manajemen Persediaan.
Ravinder, H., & Misra, R. B. ((2014). ABC Analysis For Inventory Management: Bridging The Gap Between Research And Classroom.
REM Associates of Princeton. (1999).
Rodrigues, L. L., Oliveira, I. H., Alexandre, M. F., Castorani, R. R., & Jacubavicius, C. (2015). Stocks Management Through Application Of Demand Forecast Methods: A Case Study.
Shen, H., Deng, Q., Lao, R., & Wu, S. (2017). A Case Study of Inventory Management in a Manufacturing Company in China.
Sohail, N., & Sheikh, T. H. (2018). A Study of Inventory Management System Case Study.
Sutawijaya, A. H., & Marlapa, E. (2016). Supply Chain Management: Analisis Dan Penerapan
Menggunakan Reference (Scor) Di Pt. Indoturbine.