Raw Material Order Research Articles

Development of IoT Kaizen System for Smart Lean Raw Material Inventory Management: A case study at an SME factory in Malaysia

Effective Raw Material Inventory Management is crucial for overall company performance, demanding significant improvements. In the current technologically advanced landscape, the imperative adoption of the Internet of Things (IoT) is crucial for propelling inventory management forward and amplifying the visibility of raw materials. This case study is dedicated to developing an IoT Kaizen System, meticulously aligned with the Smart Lean Factory Inventory Control Framework, tailored to enhance Raw Material Inventory Management within an SME factory in Seremban, Negeri Sembilan. With a focal point on Loft Layer materials, the study encompasses Raw Material Ordering, Receiving, and Charging Out Log operations. Leveraging web-based tools such as Google Sheets, AppSheet, and Looker Studio, the system adeptly digitizes manual processes, tracking real-time data and integrating data visualization tools for informed decision-making. Implemented within a genuine industrial context, the project is intricately tailored to meet the unique preferences and requirements of the company, ensuring a customized solution that aligns with industry standards and reflects specific operational nuances. The resulting digital system introduces a structured, simplified, and efficient approach to Raw Material Inventory Management, injecting enhanced operational control and adaptability into the company’s workflow. Through the system implementation, warehouse space was reduced by 15%, order processing was done fully digitally that achieve zero case of ordering error and achieved zero case of material stock out. This system can adjust to what’s needed in modern manufacturing. It proves that using innovation and technology can make a business better by making things run more smoothly and helping with decision-making.

Pengoptimalan Persediaan Bahan Baku Utama Untuk Mengatasi Tantangan Industri Menggunakan Metode Just In Time (JIT) Dan Silver Meal Heuristic Pada PT. Indonesia Plafon Semesta

The inventory problem that still occurs at PT Indonesia Plafon Semesta is the accumulation of resin and calcium raw materials which results in considerable losses. PT Indofon began to experience a buildup of resin raw materials in August amounting to 16,100Kg and for calcium amounting to 15,200Kg so that each month it soared until its peak in October, namely a buildup of 23,500Kg of resin, and 23,200Kg of calcium. The use of the right method for inventory control problems is Just In Time , which is a management strategy used to optimize the production process and product delivery by buying and producing only when needed and at the right time. Silver Meal Heuristic, a heuristic approach used in inventory control to determine the optimal lot size. The quantity of raw material orders using JIT is relatively more than the silver meal, but with JIT the supplier only needs to send 4-5 times, meaning that the company can save costs. The quantity and frequency obtained from data processing using silver meal is more optimal. However, the cost of raw material inventory incurred is quite large. For a decrease in efficiency costs by implementing a policy of making purchases with Just In Time (JIT) and is expected to save on raw material inventory costs. So that these cost savings can be allocated by the company to other costs.

Analysis of Raw Material Inventory Control with A Tabular Approach and Formula Approach Economic Order Quantity (EOQ) to Optimize The Cost of Soybean Raw Material Inventory At The Rizqy Putra Fried Tofu Factory

Inventory management is a crucial aspect in the operations of the manufacturing industry, including in fried tofu factories such as the Rizqy Putra Fried Tofu Factory. The main raw material, namely soybeans, must be managed efficiently to ensure smooth production and minimize the costs incurred. This research aims to determine the inventory control of soybean raw materials applied by Rizqy Putra Fried Tofu Factory, the total inventory cost, and the optimal quantity of soybean raw material orders. This research is quantitative research with a comparative descriptive analysis. The data processed are the inventory purchase and usage reports of soybean raw materials at Rizqy Putra Fried Tofu Factory in 2023. The data analysis method used in this research includes two approaches: the tabular approach and the formula approach with the calculation technique of Economic Order Quantity (EOQ). Based on the results of the research, the inventory control method applied by Rizqy Putra Fried Tofu Factory is the traditional or conventional method, where the total inventory cost of soybean raw materials is Rp. 18,720,000 with details of storage costs amounting to Rp. 18,000,000 and ordering costs of Rp. 720,000 per year, and an ordering frequency of 48 times with an average order quantity of 5,875 kg. Meanwhile, according to the calculation of the formula approach EOQ, the optimal order quantity is 2,880 kg, with an ordering frequency of 24 times and the total inventory cost incurred is Rp. 734,387. The conclusion of this research indicates that based on the calculation of the EOQ formula approach, the total inventory cost of soybean raw materials is more optimal compared to the conventional method applied by Rizqy Putra Fried Tofu Factory.

Analisis Pemilihan Supplier Bahan Baku Tas Gitar dengan Metode Fuzzy Analytical Hierarchy Process (FAHP) di PT. True Indonesia

The use of high-quality raw materials will affect the quality of products produced by a company. Companies really need suppliers who can supply quality raw materials. This can be realized by selecting the most appropriate supplier so that the company can minimize problems that can occur regarding raw material suppliers. PT True Indonesia is a manufacturing company that produces music equipment bags. So far, the company has made decisions in choosing suppliers only with the intuition of the parts related to the procurement of these raw materials. The decision chosen by the company in determining this supplier is often not right. The problems experienced by the company are the quality of raw materials that do not meet the company's criteria and the supplier's delay in sending raw material orders. In this study, the Fuzzy Analytical Hierarchy Process (FAHP) method was used. There are 7 main criteria in choosing a polyester fabric supplier, namely quality, delivery, price, communication system, warranties and claim policies, performance history, and geographic location. From the calculations carried out, the best polyester fabric supplier ranking for PT True Indonesia in order, Tongxiang has a total value of 0,3395, Hantron has a total value of 0,3350, PT. Lambang Jaya has a total value of 0,3340, PT. Shinta Indah Jaya has a total value of 0,3174, and CV. Agung has a total value of 0.3116.

Analysis of Raw Material Inventory Control Using the Economic Order Quantity (EOQ) Method: Study of Simping MSMEs, Purwakarta Regency, Indonesia

Raw material inventory is an important aspect in managing small and medium enterprises (SMEs). Effective inventory control can help SMEs increase efficiency and profitability. This research aims to analyze raw material inventory control at Simping MSMEs in Purwakarta Regency, Indonesia, using the economic order quantity (EOQ) method. Data was collected through a survey of 30 Simping MSMEs. The research results show that the EOQ method can help Simping MSMEs in determining the optimal number of raw material orders and minimizing inventory costs. Implementing the EOQ method can result in average inventory cost savings of 15% compared to the method currently used.

Tata Kelola Persediaan Bahan Baku Usaha Djamoe Van Java untuk Meningkatkan Efisiensi Pembuatan Jamu

Raw material inventory is unprocessed basic material provided by the company for later use in the company's production process. Raw materials are important in production companies. Limited or excess supplies of raw materials can be a problem for the company. A shortage of raw materials can result in problems with company activities, especially in the production process, while excess supplies of raw materials can lead to excessive costs in maintaining raw materials and the value of raw materials will decrease over time (Anista & Widiyastuti, 2016). The method used in this research is quantitative descriptive. According to Winartha (2006: 155), the quantitative descriptive method is analyzing, describing and summarizing various conditions and situations from various data in the form of numbers collected from the results of analysis and interviews or observations regarding the problems being studied that occur in the field. Based on the calculation results, the optimal quantity of raw material orders for the Djamoe Van Java business is 10 Kg. Based on the results of the research and discussion described previously, it can be concluded that to obtain optimal raw material inventory management for the Djamoe Van Java business, the quantity The economic purchase (EOQ) that the company must provide is 10 kg. The results of calculations that have been carried out in Total Inventory Cost (TIC) show that after implementing an appropriate and optimal inventory control system, the company can save costs of IDR 150,000. Companies should determine Reorder Points in carrying out raw material inventory control to anticipate possible delays in ordering raw materials.

Research on Raw Material Ordering and Transportation Planning Based on Constraints

Research on Raw Material Ordering and Transportation Planning Based on Constraints

Optimal strategies for green supply chains with competition between green and traditional suppliers

We consider a green supply chain that consists of a traditional supplier, a green supplier, and a manufacturer. We investigate the optimal strategies for the suppliers’ raw material prices, and the manufacturer’s production and green raw material ordering. In particular, we consider three price competition models: the traditional supplier-led model, the green supplier-led model, and the Nash game model. The results indicate that the more dominant the green supplier, the more likely the green material price will be higher than the traditional material price. In addition, the manufacturers’ product greenness level is the lowest under the green supplier-led model and the highest under the traditional supplier-led model. We also find that, as the manufacturer’s yield uncertainty increases, the prices of traditional and green raw materials both decrease with respect to the manufacturer’s product greenness level. Moreover, as customers’ green preference increases, the price of green raw materials increases, the price of traditional raw materials decreases, and the product greenness level increases.

Perencanaan Kebutuhan Baku dengan ARIMA dan EOQ

A production plan will run well if it is supported by an adequate supply of raw materials. Raw material procurement at PT Pura Barutama is done by asking suppliers to send raw materials to the warehouse every day with an uncertain amount. As a result, there is a buildup of raw materials in the warehouse. This accumulation of raw materials poses a risk of loss because the raw materials used are materials that are prone to damage, if this happens, the company will experience a loss in purchasing costs. The purpose of this study is to determine the amount of raw material orders using the ARIMA method for forecasting raw material requirements and Economic Quantity Order (EOQ) to determine the point of reordering raw materials. The results showed that the use of EOQ can save the total cost of raw material inventory up to Rp 53,549,222. It is concluded that the optimal amount of raw material ordering is 19591.8 Kg / order, ordering is done 10 times a year and the company's raw material reorder point is when the amount of raw material is 668.71 Kg, thus the company does not experience excess raw materials.

THE PLANNING FOR UPPER SHOES RAW MATERIAL INVENTORY USING THE MATERIAL REQUIREMENT PLANNING (MRP) METHOD (Case Study : PT X)

The planning of raw material inventory is one of the essential factors in planning the order of the raw materials that can make a company maintain its production quality. The company’s policies can be implemented in various ways, such as in planning the raw materials inventory to avoid shortages and excesses of the raw materials supply. However, X Inc. has not implemented inventory planning properly, making the costs incurred by the company not optimal. Thus, Material Requirement Planning (MRP) will be used to determine the scheduling time and quantity of raw materials for ordering with lot sizing techniques. Lot sizing techniques provide solutions to determine the right quantity of raw material orders and minimum total inventory costs with techniques which are Lot for Lot (LFL), Least Unit Cost (LUC), Economic Order Quantity (EOQ), and Silver-Meal. Based on the calculation results, the four lot sizing techniques show that the LFL technique is the optimal technique compared to other techniques because it produces the minimum inventory cost of Rp566.015.685,05. Thus, the company can profit Rp13.295.563,75 compared to company policy.

Application of the Economic Order Quantity (EOQ) Method in Soybean Raw Material Inventory Control at the Haji Maman Tofu Factory in Matraman District, East Jakarta

This research is based on the lack of implementation of a method in controlling the inventory of soybean raw materials at Haji Maman’s Tofu Factory in the Matraman District of East Jakarta. Haji Maman’s Tofu Factory stil relies on daily records and sometimes uses estimates or assumption in its operational activities. In the procurement of raw materials, there is often an excess due to the lack of precise calculations regarding the ordering needs of raw materials, resulting in accumulation in the warehouse. In this study, the researcher utilized the Economic Order Quantity (EOQ) method, which determines the optimal quantity of raw material orders for each purchase, the optimal purchase frequency, and establishes the Re-Order Point. The approach and type of research used is a quantitative research method with a descriptive research approach. The objective of this study is to examine the implementation of the EOQ method in controlling the inventory of soybean raw materials at Haji Maman’s Tofu Factory in the Matraman District of East Jakarta. Data Collection was conducted through observation and interviews with Mr. Haji Maman, the owner. The data analysis technique employed was the EOQ method, taking into account purchase frequency, Re-Order Point, and Total Inventory Cost (TIC). The results of this study indicate that the optimal average frequency of raw material orders is 17 times per year. The total inventory cont using Haji Maman’s Tofu Factory policy amounts to Rp. 9,709,261, while using the EOQ method it amounts to Rp. 7,492,129, resulting in savings of Rp. 2,217,132 for Haji Maman’s Tofu Factory. The Re-Order Point is determined to be 216 kilograms.

Analysis of Fabric Raw Material Inventory Control in Backpack Products Using the Material Requirements Planning (MRP) Method at CV. Metassa Collection

Inventory of raw materials is an important factor in the company so that the supply of raw materials in CV. Metassa Collection must be sufficient to guarantee the needs for the smooth running of production activities. The purpose of this study is to determine the supply of raw materials with the Material Requirements Planning method. The method used is Material Requirement Planning (MRP). In calculating the MRP, the methods used are Lot For Lot and Economic Order Quantity (EOQ). The results of the research on the smallest forecasting calculation using the Linear Regression method with MAD values ​​of 274.52, MSE 114.536, and MADE Based on MRP calculations with the Lot Sizing EOQ method produce a total cost of Rp. 2,811,032,000. The minimum ordering of raw materials using the EOQ method for controlling raw material inventory at CV. Metassa Collection.

Sistem Informasi Persediaan Bahan Baku pada Barbekoe Coffee Menggunakan Metode Buffer Stock dan FEFO

Inventory information system is an important aspect of running a business, especially for Micro, Small and Medium Enterprises (MSMEs). Barbekoe Coffee is a Micro, Small and Medium Enterprise (MSME) in the city of Medan engaged in coffee shops (Coffeeshop). In carrying out its operations, Barbekoe Coffee still uses manual recording on a piece of paper on raw material inventory ranging from incoming raw materials, outgoing raw materials, raw material inventory, to ordering raw materials. This often causes problems ranging from damaged or lost records, repeated ordering of raw materials on the same raw materials and employees who often remove raw materials from the warehouse not in the order in which the raw materials enter. So often found raw materials in damaged and expired warehouses. The purpose of this study is to create and implement an appropriate and accurate inventory information system in order to minimize losses and optimize profits in the Barbekoe Coffee business. The methods used are Buffer Stock, First Expired First Out (FEFO), and Reorder Point. After testing, the system runs as expected. Barbekoe Coffee can implement precise and accurate inventory flows to increase profits and avoid losses due to damaged or expired raw materials.

Analisis Metode Economic Order Quanity Guna Melakukan Efisiensi Persediaan Bahan Baku dan Efisiensi Biaya di Industri Bakery

One of the companies in East Bekasi is a company engaged in the bread industry, with the product being sandwiches. The purpose of this research is to perform raw material efficiency and cost savings of raw material inventory. In this study, identified the bread production process for 1 period (3 months). It is known that this company ordered raw materials, namely 2100 kg of flour and 480 kg of granulated sugar. However, in reality, only 1537 kg of wheat flour was used and 379 kg of granulated sugar. There is a difference between ordering raw materials and using raw materials so that the costs incurred in carrying out raw material inventory exceed the limits of the costs that have been determined by the company. The method used is the Economic Order Quantity (EOQ) method. The goal is to control the number of raw material orders made by this company and indirectly to save raw material inventory costs. The findings are comparing calculations by companies using EOQ, the efficiency of raw materials after using the EOQ method for wheat flour is 542 kg and granulated sugar is 93 kg and savings in raw material inventory costs for wheat flour is Rp. 156,437 and granulated sugar is Rp. 212,092.

Designing a Macro-VBA Excel-based Kit List Printing Application for the Supporting Department of PT XYZ

The recording of raw material orders in PT.XYZ must be done through the embedded ERP system in the company, Microsoft Dynamics GP. However, the system is not perfect as it is not suitable for workers who follow traditional practices. To avoid losing goods, PT XYZ has started implementing kit recording, but a shortage of workers who enter KIT data can lead to human error. To overcome this, PT XYZ can automate the printing of KIT using VBA in Microsoft Excel. VBA allows applications to work more efficiently by easily manipulating object models. Excel macros support VBA programming and enhance the flexibility of the programming language. A well-organized VBA Excel application can produce a KIT list by pulling data from the production order sheet attached to the bus chassis as it moves on the production line. Once the specifications for a bus body to be produced are obtained, the user can edit and click one button to get the KIT that is suitable for that bus. Therefore, VBA in Excel can help PT XYZ improve the recording of raw material orders and reduce human errors that can cause financial losses.

Research on the Problem of Enterprise Raw Material Ordering and Transportation Based on EOQ Model

For the ordering and transportation of raw materials in production enterprises, it researches the relationship and characteristics of the company’s order quantity and the supplier’s supply quantity by using the correlation analysis method. The average model is used to analyze the supplier’s supply quantity. Besides, it predicts the satisfying relationship between the supply quantity and the order quantity. Then, it uses the 0-1 linear programming model and the limit model to calculate the number of suppliers selected by the enterprise. Besides, it uses Excel calculation and analysis method to give the most economical ordering plan. The research performs data analysis on the chart, establishes an EOQ function model using the knowledge of mathematical functions. It calculates the optimal solution, and formulates the production plan after the transformation of the enterprise by using the assumption method. Therefore, the weekly production capacity of the enterprise can be improved.

PERENCANAAN PERSEDIAAN BAHAN BAKU BIJI KOPI MENGGUNAKAN METODE MATERIAL REQUIREMENT PLANNING PADA UMKM CENING JAYA

This study uses the Material Requirement Planning method. By measuring lot orders Lot For Lot (LFL), Economic Order Quantity (EOQ), Period Order Quantity (POQ), and Silver Meal (SM), the purpose of this study is to determine how UMKM Cening Jaya planning the supply of raw materials for production. To determine the best method for Cening Jaya UMKM to plan their raw material inventory. The research method used is descriptive and qualitative. The data collection techniques used are interviews, observation and documentation. The data analysis technique used in this research is to collect information about the amount of sales data in May 2020 to April 2021, analyze the data using lot orders Lot For Lot (LFL), Economic Order Quantity (EOQ), Period Order Quantity (POQ), Silver Meal (SM). The results of the research on raw material planning with lot size Lot For Lot of raw material needs in the following month or once a month, Economic Order Quantity by determining raw material orders of 224 kg once ordered, Period Order Quantity by determining raw material orders every 3 months, Silver The meal for determining the order of raw material for coffee beans is 1,108 kg once ordered within 1 year. From the conclusion above, Cening Jaya UMKM is better to use lot size Period Order Quantity with orderquantity as much as 2 months to order with a total cost of Rp. 2.007.000 due to avoid shortage of raw materials.

Research on raw material ordering and transportation scheme of production enterprises based on genetic algorithm

With the deepening of China's reform and opening up and the gradual improvement of productivity level,the production enterprises of construction and decoration panels have gradually sprung up. In order to improve the production efficiency of enterprises and reduce the loss of raw materials, this paper establishes an analytical hierarchical model, and a 0-1 goal programming model. Based on the analysis of the problem, it pays attention to the connection between the questions. A rational solution for ordering and transporting raw materials based on the 0-1 goal programming model is also proposed in conjunction with real-life practice. In this paper, the problem is solved by building several mathematical models and the results are entered in Annex A and Annex B. After the model is implemented and tested, significant improvements are found. In addition, the model is improved by a genetic algorithm so that the model is well applicable and generalizable.

Optimal ordering and transportation scheme of raw materials in production enterprises based on objective programming model

In order to better realize the development of construction production enterprises and create greater profit space for them, based on the relevant data of raw material suppliers and forwarders of a production enterprise within five years, this paper first uses ARIMA algorithm to solve the enterprise's ordering scheme, and then uses 0-1 integer programming to find the constraints between suppliers and forwarders, Finally, LINGO software is used to build the target programming model to solve the 24-week transfer scheme.

An integer planning-based model for ordering and transporting raw materials for manufacturing companies

With the development of building materials manufacturing enterprises, the ordering, transportation and storage of raw materials have become important factors affecting the production of manufacturing enterprises. In order to ensure the normal production and operation activities and reduce the production cost as much as possible, enterprises need to reasonably adjust the relevant raw material ordering scheme and transportation scheme to ensure both the considerable production efficiency and the healthy and sustainable production. In this paper, a mathematical model based on sequential heuristic algorithm and integer programming is established to develop the most economical ordering scheme and the least lossy transportation scheme for raw materials in the process of production operation.