SPARE PARTS INVENTORY CONTROL TO MINIMIZE TOTAL INVENTORY COST USING CONTINUOUS REVIEW SYSTEM AND PERIODIC REVIEW SYSTEM APPROACHES Rahayu Khasanah*, Masih Ingdana Fadillah, Imam Sodikin, Joko Susetyo
AKPRIND Institute of Science and Technology
*rahayu.khasanah[at]akprind.ac.id
Abstract
Spare part supply must be maintained at a specific level in order to balance the demand for spare parts with the amount of spare parts required for maintenance activities to perform smoothly. Based on the findings from interview with the warehouse supervisor in the case study, it was determined that the warehouse supervisor intuition has been used to control the inventory of spare parts thus far. According to the collected data, there are 19 types of spare parts (8,509 pieces) that have been in storage for an extended period of time, resulting in high storage costs, and 18 types of spare parts (884 pieces) that are in short supply, resulting in high ordering costs. The corporation desires a modification that will improve inventory control and minimize the total cost of inventory. To improve the company control over the 229 types of of shuttle machine spare parts, it is important to classify spare parts based on the inventory control method. ABC classification is used to categorize spare parts according to their usage value, VED classification is used to classify spare parts according to their critical value in the machine, and HML classification groups spare parts according to their purchase price. The best ordering variables (Q), safety stock, reorder point, and total cost are produced through continuous review control. While ordering intervals, inventory targets, and overall costs are determined by Periodic Review control variables. Using ABC, VED, and HML classification, the classification resulted into 66 spare parts. The entire saving cost of inventory management as proposed is Rp. 2.134.213.339.
