Delivery Lot Size Optimization and Schedule of Shipment in Distribution Centre

Abstract

This paper describes the optimal delivery lot sizes and plan delivery schedules from distribution center to manufacturer with a Distribution Requirement Planning (DRP). A company that produces nails has a problem that the planning and scheduling of goods distribution is not coordinated well. the demand for each product is out of control resulting in shortages or excesses as well as delays in distribution at each Distribution Center (DC). The purpose of this research is to analyze the distribution needs by using the Distribution Resources Planning (DRP) method to avoid delays in distributing products to each DC. Distribution analysis using the DRP method is used to get when and how many products will be sent for each DC. This method starts with calculating demand forecasting for the next 12 months. After obtaining the request results for the next 12 months, then the EOQ is calculated and the safety stock profit of each DC. With DRP method the optimal delivery quantity in DC Aceh 51.180 kgs, DC Padang 65.830 kgs, DC Pekanbaru 54.100 kgs, DC Palembang 67.225 kgs, and DC Medan 42.950 kgs. Using the optimal quantity delivery, frequency of shipment decreased until 51,5% and inventory cost decreased until 20,4%.