Ending Inventory Research Articles

Effectiveness of Supply Management Using Kanban System in Hospital Pharmacy Logistics: A Case Study

The aims of this research are, first to determine the stock profile of medical consumables before and after the implementation of Kanban system, and second to analysis the effectiveness inventory management of Kanban application. The research method uses descriptive quantitative by comparing the pre-experimental and post-experimental averages. An experiment was conducted to apply the Kanban system to pharmaceutical logistics at a hospital in Ponorogo for two months. Analysis using the FSN method based on TOR, ROP method, Safety Stock method followed by the implementation of the Kanban system. The results obtained are the average pre-Kanban purchase is 6715.7 and post-Kanban is 2232.8. The average ending inventory before Kanban is 8638.6 and after Kanban is 1656.2. The results of the paired t test yield a significant value for purchases of 0.168, which means that there are significant differences in pre-Kanban and post-Kanban purchases. The percentage of effectiveness tested with an N Gain score of 49.362% for purchases and for final stock of 47.655% shows that it is still in the less effective category. The benefit of this research is that in theory it provides an overview of the method for testing the effectiveness of kanban implementation, in practice it provides an overview of Kanban implementation.

Analisis Perencanaan Dan Pengelolaan Persediaan Dengan Metode EOQ Untuk Meningkatkan Efisiensi Biaya Persediaan Pada PT WIJAYA RISKISMAS TUNGGAL

Good inventory planning and management usually lies in understanding the company's stock of inventory, whether located in warehouses or stores, and how the inventory processes go into and out of the company.
 The analytical technique used in this research is descriptive analysis technique. Primary data were collected and obtained through observational interviews, documentation studies and literature studies, while secondary data were obtained from literature related to the research topic. The financial statements used as the object of research.
 The results showed that PT Wijaya Riskismas Tunggal carried out the inventory planning process without considering the amount of inventory in the company. The total beginning inventory in the company throughout 2020 was 68,265 with an average of 5,689 while the total use made by the company was only 41,272 with an average of 3,439 which caused the company's total ending inventory to be 26,993 with an average of 2,249, PT. Wijaya Riskismas Tunggal performs the Inventory Management process regardless of the number of requests required by each customer. The number of inventory purchases made by the company is 42,700 with an average of 3,558, while the number of uses required by consumers is only 41,272 with an average of 3,439. Compare the calculation made by PT Wijaya Riskismas Tunggal with the traditional calculation of 41,272 with the total cost of inventory. Rp. 6,130,000 while the calculation using the Economic Order Quantity (EOQ) method is 41,727 with a total inventory cost of Rp 5,673,814.

PERHITUNGAN PERSEDIAAN BARANG DAGANG MENGGUNAKAN METODE FIFO DAN LIFO

Several methods of calculating or recording stock inventory that are popularly used are the
 FIFO, LIFO, and Average methods. In accounting, inventory can be calculated in several
 methods, where this method can be adjusted to the type of company and also the interests of the
 company. The research objective is to find out how to calculate the Ending Inventory, Cost of
 Goods Sold using the FIFO and LIFO methods. The research results show that the calculation of
 Inventory Value, Cost of Goods Sold using the FIFO and LIFO methods gives different results.
 Inventory cost flow method with FIFO assumes the cost flow of outgoing inventory is taken from
 the cost of the first incoming inventory. The LIFO method assumes the first units of inventory
 purchased will be issued last.

PENERAPAN METODE FIFO DAN METODE LIFO DALAM MENJAGA EFEKTIVITAS PERSEDIAAN PUPUK (STUDI KASUS PT. CAHAYA PELITA ANDHIKA) KABUPATEN TAPANULI TENGAH

Abstrak. The purpose of this research is to find out the right method to achieve optimal profit at PT. Andhika's lamp. Meanwhile, the formulation of the problem in this study is how this research method uses a descriptive quantitative approach with the ex post facto research method, namely research on data collected after the event occurred. The research was conducted by examining purchase cards and use cards in 2021. The conclusion of this study is that within a one-year period it can be concluded that the ending inventory value generated using the FIFO method is Rp. 118,840,000, while the LIFO method produces an ending inventory value of Rp. 124,440,000, the LIFO method is the opposite of the FIFO method, which produces a high cost of use so that the resulting profit is low. Based on the conclusions of the research results using the FIFO method, when the acquisition price increases using the LIFO method will be able to produce a high cost of production, this is the impact of the average trend in determining the cost of using fertilizer and ending inventory and reducing the effect of excessive price changes. high or low so that future costs will be more stable.

Analisis Harga Pokok Penjualan Produk Lampu Hias Pada Toko Sentosa Listrik di Kabupaten Toraja Utara

This study aims to determine the cost of goods sold for decorative lighting products at the Sentosa Electric Store in North Toraja Regency. The method used in this study is a quantitative method by identifying and collecting data in the form of numbers by describing the cost of goods sold by analyzing the research object. Data collection techniques and data analysis in this study were through literature study by studying literature such as books, research journals in the library and field studies by conducting observations and interviews with the formula for calculating the cost of goods sold. The results of this study indicate the cost of goods sold for decorative lighting products at the Sentosa Electric Store in North Toraja Regency, the cost of goods sold is Rp. 212,201,250. from the initial inventory of merchandise amounting to Rp. 82.890.000 plus purchases of Rp. 168.205,000 plus the purchase of transportation expenses of Rp. 24,000,000 so that a net purchase of Rp. 192,205,000 plus the cost of goods ready for sale amounted to Rp. 275,095. 000 then deducted the ending inventory of goods as of December 31, 2020 of Rp. 62,893,750 so that the total cost of goods sold is obtained.

Parallelized Decomposition Approaches to Solve the Capacitated Lot-Sizing Problem with Setup Times and Constraints on Ending Inventories

Parallelized Decomposition Approaches to Solve the Capacitated Lot-Sizing Problem with Setup Times and Constraints on Ending Inventories

Parallelized Decomposition Approaches to Solve the Capacitated Lot-Sizing Problem with Setup Times and Constraints on Ending Inventories

Parallelized Decomposition Approaches to Solve the Capacitated Lot-Sizing Problem with Setup Times and Constraints on Ending Inventories

Profit Optimization with a Power-Law Adjustable Coefficient for Zero Ending Inventories Dynamic Pricing Model, Stochastic Demand, and Fixed Lifetime Product

We consider a single product with a fixed lifetime and price sensitive intensity of a Poisson customers flow. A model with a power adjustable coefficient of a dynamic retail price control through the intensity of the demand is considered providing almost surely zero ending inventories at the end of the product's lifetime. To obtain probabilistic characteristics of the selling process and the expected profit, the diffusion approximation of the stock level process is used. The task of the expected profit maximization with respect to the adjustable coefficient for a linear approximation of the intensity-of-price dependence is solved.

Motivations and analysis of the capacitated lot-sizing problem with setup times and minimum and maximum ending inventories

This paper first analyzes the negative impact of the end-of-horizon effect when solving the capacitated multi-item lot-sizing problem with setup costs and times on a rolling horizon. Maximum ending inventories for items and a global minimum ending inventory are considered to define a new optimization problem whose optimal solutions are much less impacted by the end-of-horizon effect. Then, a generation scheme is proposed to create new instances with initial inventories and ending inventories. This scheme relies on the analysis of the cyclical production planning problem to derive relevant parameters. Computational experiments are carried out to compare the solutions obtained for original instances of the literature and for the new instances, and to analyze the relevance of the new instances on a rolling horizon.

Two Level Trade Credit Policy Approach in Inventory Model with Expiration Rate and Stock Dependent Demand under Nonzero Inventory and Partial Backlogged Shortages

In present real life situations, the stock and expiration date directly impact on the demand of an item. In this context, this research work develops an inventory model for stock and expiration rate-dependent demand under a two-level trade credit policy. Specifically, the following three situations are studied: (i) trade credit policy without zero ending inventory; (ii) trade credit policy with zero ending inventory; (iii) trade credit policy with partial backlogged shortages. The proposed inventory model is formulated as a non-linear constrained optimization problem. Some theoretical results are derived, and an algorithm is stated in order to solve the proposed inventory model. The main objective of the inventory model is to determine the optimal cycle length, the optimal ending inventory level, and the optimal number of units displayed which maximize the total profit. Some numerical examples are solved. Finally, a sensitivity analysis is done with the aim to see the impacts of a variation of the input parameters on the decision variables and the total profit.

Distribution of Selling Duration for Zero Ending Inventory Dynamic Pricing Model with Exponentially Distributed Purchases

Abstract We consider a perishable product with a fixed shelf life under fixed-order quantity policy. The demand is a compound Poisson process with a price sensitive intensity and an exponential batch size’s distribution. A model of retail price control is considered allowing us to sell a lot without leftovers almost surely during the product’s lifetime. The Laplace transforms of the conditional probability density function of the time to the end of the session and the conditional mean of this time are obtained. The simulation results of the session duration are also presented and compared with previously obtained approximate ones.

The Financial Variables of Water Filter Pot Mainly Raw Material Darmasaba Clay in Btikk-Indonesia

The purpose of this study is: to calculate the cost of goods manufactured, determine the selling price, and recognize the value of the inventory of water filter pots made from Darmasaba clay. The results showed that the Pot water filter (DA 28.0 - DB 17.5 - T 14.0) at BTIKK-BPPT can be made from two different raw material compositions, namely: a) Darmasaba clay and husk in a ratio of 70%: 30%, hereinafter referred to as Water Filter Pot 70:30; and b) Darmasaba clay, husks and sawdust in the ratio of 60%: 20%: 20%, hereinafter referred to as Water Filter Pot 60:20:20; (2) The financial variables of Water Filter Pot 70:30 and Water Filter Pot 60:20:20 are focused on three main things, namely the cost of goods manufactured, the selling price, and the ending inventory. The cost of goods manufactured 70:30 Water Filter Pot is Rp 44,869.50 per kg, Rp 86.09 lower than 60:20:20 Water Filter Pot which is IDR 44,869.50 per kg. The selling price of the 70:30 Water Filter Pot is IDR 49,350.00 per kg, IDR 100.00 is cheaper than the 60:20:20 Water Filter Pot which is IDR 39,450.00 per kg. The estimated value of the ending inventory of 70:30 Water Filter Pot is IDR 25,306,398.12, IDR 48,554.64 lower than the 60:20:20 Water Filter Pot of IDR 25,354,951.16; and (3) The using of Darmasaba clay and husk raw materials in the ratio of 70%: 30% is more appropriate to be used as raw material for water filter pots (DA28.0 - DB 17.5 - T 14.0), because it has technical and financial advantages for get porous ceramic standardization.Keywords: financial variables, water filter pots, Darmasaba clay.JEL Classification: M41DOI: https://doi.org/10.32479/ijefi.9470

Inventory model for a fresh product when demand depends on freshness, price, inventory level and expiration date under markdown policy

In practice, the demand for a fresh product depends on how fresh it is, therefore, it is important to take expiration date into consideration as it is a key to determine the freshness level of any perishable items. Furthermore, based on marketing and economic theory, selling price plays a crucial role in influencing the demand. Also, a higher inventory level may enhance the profit as it encourages consumers to buy more. Since the demand for fresh product declines over time, markdown policy is offered after some time to increase the demand and profit while reducing the inventory. For this demand function, it may be profitable to maintain a high stock level and the zero ending inventory is relaxed to non-zero ending inventory. Salvage value is incorporated into the deteriorating units. Using differential equations, we propose an economic order quantity model which demand dependent on freshness-expiration date, price and inventory level under markdown policy. We also demonstrate the relationship between markdown time and the annual total profit. Numerical example and sensitivity analysis are used to illustrate the effectiveness of the model.

Profit Optimization for Zero Ending Inventories Dynamic Pricing Model under Stochastic Demand and Fixed Lifetime Product

Abstract We consider a single perishable product under a compound Poisson demand with a price sensitive intensity and a continuous batch size distribution. A model of a dynamic retail price control with an adjustable coefficient is proposed providing almost surely zero ending inventories at the end of the product’s lifetime. To obtain probabilistic characteristics of the selling process and the expected profit a diffusion approximation of the demand process is used. The task of the expected profit optimization with respect to the coefficient and lot size for a linear intensity-of-price dependence is solved.

Zero Ending Inventory Dynamic Pricing Model under Stochastic Demand, Fixed Lifetime Product, and Fixed Order Quantity

We consider a perishable product with a fixed shelf life under fixed-order quantity policy. The demand is a compound Poisson process with a price sensitive intensity and a continuous batch size distribution. A model of retail price control is proposed allowing us to sell a lot without leftovers almost surely during the product’s lifetime. A diffusion approximation of the demand process is used to find the probabilistic characteristics of the selling process and the expected revenue.

An inventory replenishment system with two inventory-based substitutable products

In a supermarket, two mutually substitutable products with the same price are usually arranged one next to the other such as Coke and Pepsi colas, Campbell and Progresso soups, Breyer and Friendly ice creams, etc. It is evident that a large pile of products (e.g., colas, soups, baked goods, fruits, vegetables, etc.) displayed in a supermarket often induces customers to buy more because of its visibility, variety, and freshness. Hence, high inventory of one product provides consumers various choices, and makes this product preferable. In short, the demand for one product is positively influenced by its displayed stock level while negatively impacted by the displayed stock level of the other product. With the demand being stock-dependent, it may be profitable to maintain high stock level at the end of the replenishment cycle. The common inventory assumption of zero-ending inventory is extended to non-negative ending inventory. Hence, we first propose an inventory model with two inventory-based substitutable products to determine the optimal replenishment time and the ending inventory levels for both products in order to maximize the total annual profit. We then demonstrate that the total annual profit is strictly pseudo-concave with respect to the decision variables, which reduces the search for the global maximum to a local optimum. We also use simple economic interpretations to explain theoretical results. Furthermore, the theoretical results reveal that the optimal replenishment time is whenever one of two substitutable products is sold-out. Finally, numerical examples and sensitivity analyses are presented to highlight several managerial implications.

PENERAPAN BIAYA STANDAR DENGAN PENDEKATAN BIAYA PENUH DALAM MENGHITUNG HARGA POKOK PRODUKSI PROTOTIPE TEKO HIJAU BERDEKORASI PATRA PUNGGEL (D 17,5 CM – T 14,5 CM) SEBAGAI DASAR PENENTUAN HARGA JUAL DAN PERSEDIAAN AKHIR, SERTA PENGARUHNYA TERHADAP LAP

The aims of this research that relate for the green teapot prothotype whichdecorate of patra punggel (d 17,5 cm – h 14,5 cm) were : (1) To calculatecost ofgood manufactured; (2) To determine cost price; (3) To recognized ending inventory;and (4) To knew the influences of financial variable to financial statements currentperiod. The research results shew that : (1) Cost of good manufactured the greenteapot prothotype which decorate of patra punggel (d 17,5 cm – h 14,5 cm) actuallywas Rp 73.625,00 each unit, that followed by raw materal cost Rp 38.750,00, directlabour cost Rp 15.500,00, variable ovrehead cost Rp 11.625,00, and fixed overheadcost Rp 7.750,00, but according to Standard Costing systems (theoretically) was Rp85.698,44 each unit, that followed raw materal cost Rp 38.750,00, direct labourcost Rp 40.589,10, variable ovrehead cost Rp 4.688,71, and fixed overhead costRp 1.670,63. Cost of good manufactured green teapotprothotype actually smallerthan theoretically Rp 12.073,44; (2) Cost price the green teapot prothotype actuallywas Rp 84.668,75 each unit, that priceformed by cost ofgood manufactured Rp73.625,00 expected profit margin Rp 3.681,25, and operation expense Rp 7.362,50(marketing expense Rp 4.417,50 and general & administration expense Rp 2.945,00),but according to full cost pricing method (theoretically), cost price was Rp 98.553,20each unit, that priceformed by cost of good manufactured Rp 85.690,44, expectedprofit margin Rp 4.284,92, and operating expense Rp 8.569,04(marketing expenseRp 5.141,90 and general & administration expense Rp3.427,93). Cost price greenteapotprothotype actually smaller than theoretically Rp 13.884,45;(3) Endinginventory of green teapotprothotype actually was Rp 4.417.500,00, but accordingto Special identification (theoretically), ending inventory was Rp 5.141.906,40.Ending inventory of green teapot prothotype actually smaller than theoretically Rp 724.416,40; and (4) Financial variable actually that followed by cost of goods manufactured, cost price, and ending inventory green teapotprothotype causedfinancial statements actuallywas understated.

Pricing and Lot-Sizing for Continuously Decaying Items with Stochastic Demand

The paper is concerned with a stochastic inventory models for continuously deteriorating items with price dependent demand’s intensity, zero ending inventory, and non-zero lead time. We assume that demand process is a compound Poisson with continuous increments or is described by a Brownian motion process. The objective of this paper is to determine the selling price and lot-size maximizing the average profit per unit time for a lot size large enough. We prove that the main part of the mean cycle time as lot-size tends to infinity is the same as for deterministic demand. We obtain the equations for optimal lot-size and time varying selling price.

Addressing Wildfire Risk in Forest Management Planning with Multiple Criteria Decision Making Methods

Wildfires impact the outcomes of forest management plans. Addressing that impact is thus critical for effective forest ecosystem management planning. This paper presents research on the use of multiple criteria decision making (MCDM) methods that integrate wildfire risk in planning contexts characterized by multiple objectives. Specifically, an a posteriori preference modeling approach is developed that adds wildfire criteria to a set of objectives representing ecosystem services supply values. Wildfire risk criteria are derived from stand-level wildfire occurrence and damage models as well as from the characteristics of neighboring stands that may impact wildfire probability and spread. A forested landscape classified into 1976 stands is used for testing purposes. The management planning criteria include the carbon stock, harvest volumes for three forest species, the volume of the ending inventory, and resistance to wildfire risk indicators. Results show the potential of multiple criteria decision making methods to provide information about trade-offs between wildfire risk and the supply of provisioning (timber) as well as regulatory (carbon) ecosystem services. This information may contribute to the effectiveness of forest ecosystem management planning.

Optimal Policies for Perishable Items when Demand Depends on Freshness of Displayed Stock and Selling Price

Display of stock plays an effective role to boost up the demand as it encourages customer to buy more. For perishable good freshness is also an important factor affecting its demand, as consumers look for fresh items. Selling price is also a major factor affecting the demand. This paper proposes an inventory model where demand depends on selling price, freshness of item and displayed stock. The traditional assumption of zero ending inventories is relaxed to a non-zero ending inventory. As it may be profitable to have a closeout sale at a markdown price, and always keep on-hand fresh displayed stocks if the demand is freshness-and- stock dependent. The objective is to maximize the total profit with respect to three decision variables (i.e., unit price, cycle time and ending-inventory level). Numerical examples are presented to validate the model and sensitivity analysis of inventory parameters is done to understand their effect in determining optimal policies.