INVENTORY MANAGEMENT

Apa itu Inventory

Management?
Inventory management adalah
bagian dari manajemen operasional
yang memiliki tujuan untuk
menyeimbangkan antara inventory
investment dan pelayanan
konsumen.

Pentingnya Inventory
(Barang persediaan)
50 % dari total modal yang
diinvestasikan di perusahaan adalah
barang persediaan. Barang
persediaan menjadi aset perusahaan
paling mahal.
O.K.I, Manajer operasional harus
mampu menyeimbangkan antara
inventory investment dengan
pelayanan konsumennya

Macam-macam Inventory
Raw-material (Barang baku mentah)
Work-in-Process (WIP) / barang baku
setengah jadi
Maintenance/Repair/Operating (MRO) .
Barang habis pakai, tujuannya untuk
pemeliharan mesin, reparasi dan
operasional jadi jika barang persediaan
habis, operasional masih bisa berjalan
sementara.
Finished Goods.

Work in Process Inventory

Memanajemen Inventory
Bagaimana barang-barang
persediaan dapat diklasifikasikan
(ABC analysis)
Seberapa akurat catatan barang
persediaan yang dibuat

 Cycle counting. Proses pencatatan

barang persediaan dengan skedul
rutin.
ABC Analysis. Meranking semua item
persediaan sesuai kepentingannya

ABC analysis
Membagi barang persediaan
berdasarkan tiga kelas dasar
terhadap nilai uang tahunan:
Class A Bernilai uang tahunan tinggi
Class B Bernilai uang tahunan
medium
Class C Bernilai uang tahunan rendah

ABC Analysis
Dibuat untuk fokus pada bagianbagian terpenting dalam persediaan
barang.

Tahapan ABC analysis

Tahap 1: Tentukan penggunaan/jual
tahunan tiap item.
Tahap 2: Tentukan persentase total
penggunaan/penjualan tiap item.
Tahap 3: Ranking dari persentase
tertinggi ke terendah.

ABC Analysis
Tahap 4: Klasifikasikan ke kategori
ABC
- Class A: 15% item tercatat untuk
rataan penjualan 70-80%
- Class B: 30% item tercatat untuk
rataan penjualan 15-25%
- Class C: 55% item tercatat untuk
rataan penjualan sebesar 5%

ABC Analysis
Selain kriteria nilai uang tahunan,
juga dapat digunakan kriteria lainnya
contoh
- High shortage or holding cost
- Anticipated engineering changes
- Delivery problems
- Quality problems

 Berdasarkan gambar sebelumnya,

kebijakan perusahaan yang dapat
dibuat adalah:
1. Fokus pada pengembangan suplaier
untuk barang A
2. Perketat kontrol persediaan secara
fisik untuk barang A
3. Lakukan forecasting untuk barang A

Contoh (example 12.1)

Omega Corporation is a small
manufacturer of computer
connectors in Raleigh, North
Carolina. The materials which go
into a connector are summarized
below:

Cycle Counting
Item dihitung dan dicatat secara
periodik
Biasanya digunakan bersamaan
dengan ABC Analysis dengan
ketentuan umum:
- Item A harus dihitung sesering
mungkin
- Sementara item C dikurangi
frekuensi perhitungannya.

Inventory Model
EOQ Model
Reorder Point
Safety Stock

 Inventory costs
1. Holding costs
2. Ordering / setup costs

Holding costs (biaya

penanganan)

Order/setup cost
Order cost : pengeluaran untuk
pengisian barang persediaan.
Didalamnya:
- Biaya untuk menempatkan dan
menerima order dari suplaier
- Biaya pengiriman, penyiapan invoice,
pemeriksaan barang
- Biaya perpindahan barang dari
tempat penyimpanan sementara

Order/setup cost
Setup cost: pengeluaran biaya
pemasangan agar dapat menunjang
produksi
Total biaya order/setup bervariasi
sesuai dengan jumlah orderan

EOQ Model

 Economic Order Quantity (EOQ): minimizes

total costs; point at which holding and orders
costs are equal

How much to order

Q* = Optimum order quantity
D = Annual Demand
S = Ordering/setup cost
H = Holding/carrying cost

2 DS
Q
H
*

EOQ Model
Demand
D
Expected number of orders N

Order quantity Q

Order Cycle Time (i.e., the time between th e recepit of orders)

Number of working days per year

N
Number of working days per year

D
Q
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Q = Order quantity
D = Annual Demand
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EOQ Model
Average Inventory

Q
2

D
Annual ordering cost S
Q

Q = Order quantity
D = Annual Demand
S = Ordering/setup cost
H = Holding/carrying cost
P = Unit cost of product

Q
Annual carrying cost H
2

Total inventory cost(TIC) ordering cost carrying cost

D
Q
S H
Q
2

D
Q
Total Cost (TC) ordering cost carrying cost Product cost S H PD
Q
2
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EOQ Model (Example 12.2)

Sharp, Inc., a company that markets painless needles to hospitals,
would like to reduce its inventory cost by determining the optimal
number of hypodermic needles to obtain per order. The annual demand
is 1000 units; the ordering cost is $10 per order; the carrying cost per
unit per year is $0.5; and the unit price of product is $10. The number
of working days per year is 250 days. In order to minimize the annual
total cost,
(1) how many hypodermic needles should be ordered each time?
D = 1,000 units
S = $10 per order
H = $.50 per unit per year

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EOQ Model (Example 12.2)

(2) how many orders should be placed per year?
D = 1,000 units
S = $10 per order
H = $.50 per unit per year

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Q* = 200 units

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EOQ Model (Example 12.2)

(3) what is the expected time between orders?
D = 1,000 units
Q* = 200 units
S = $10 per order
N = 5 orders per year
H = $.50 per unit per year
Number of working days per years = 250 days

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EOQ Model (Example 12.2)

(4) how much is the optimal annual total inventory cost?
D = 1,000 units
S = $10 per order
H = $.50 per unit per year

Q* = 200 units

Total annual cost = Setup cost + Holding cost

D
Q*
TC =
S +
H
Q*
2
1,000
200
TC =
($10) +
($.50)
200
2
TC = (5)($10) + (100)($.50)
= $50 + $50
= $100
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EOQ Model (Example 12.2)

(5) how much is the optimal annual total cost?
D = 1,000 units
S = $10 per order
H = $.50 per unit per year
P = $10 per unit per product

Q* = 200 units

Total annual cost = Setup cost + Holding cost + Product cost

D
Q*
TC =
S +
H + PD
Q*
2
1,000
200
TC =
($10) +
($.50) +(1000)($10)
200
2
TC = (5)($10) + (100)($.50) + (1000)($10)
= $50 + $50 + $10,000
2014 Pearson
Inc.
= Education,
$10,100

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Example 12.3: A computer components manufacturer uses

approximately 10,000 blank CDs annually. The CDs are used at a
safety rate during the 250 workdays that the plant operates. The price
of each blank CD is $7.00 and the annual carrying cost is $0.5 per unit
per year. The ordering cost is $50. In order to minimize the annual
total cost,
(1) The optimal order size each time the inventory needs to be replenished.
D = 10,000 per year
P = $7.00

Q*

H = $0.5 per unit per year

S = $50 per order
Available working days = 250 days

2 DS
H

2 10,000 50
0.5
1415

(2) The number of purchase orders issued per year for CDs.
D 10000

7.07 orders per year

*
Q
1415
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(3) Annual ordering cost

D = 10,000 per year

P = $7.00
H = $0.5 per unit per year

D
10000
S
50 $353
*
Q
1415

S = $50 per order

Available working days = 250 days
Q* = 1415 units

(4) The number of workdays between each purchase order placed

(order cycle time).
available workdays
250

35.4 days
D
10000
1415
Q*

(5) Average inventory level of CDs

Q * 1415

708 units
2
2
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(6) Annual carrying (holding) cost

Q*
1415
H
0.5 $353
2
2

(7) Total inventory cost

TIC $353 $353 $706

D = 10,000 per year

P = $7.00
H = $0.5 per unit per year
S = $50 per order
Available working days = 250 days
Q* = 1415 units

(8) How much would the total inventory cost increase compared to (7) if
the order quantity must be 1000 units because of a standard shipping
container size?
Q = 1000 units
TIC

Q
D
1,000
10,000
H S
0 .5
50 $750
2
Q
2
1,000

Difference in TIC = $750 - $706 = $44

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Robust Model
The EOQ model is robust
It works even if all parameters and
assumptions are not met
The total cost curve is relatively flat in
the area of the EOQ

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Reorder Points
EOQ answers the how much question
The reorder point (ROP) tells when to order
minimum level of on-hand inventory that triggers a
replenishment

Lead time (L) is the time between placing and

receiving an order
ROP =

Demand
per day

Lead time for a new

order in days

=dxL
Where d =
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Demand per year

Number of working days in a year
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Reorder Points (Example 12.4)

An apple distributor has a demand for 8,000 iPods per year. The firm
operates a 250-day working year. On average, delivery of an order
takes 3 working days. What is the reorder points (ROP)?
Demand = 8,000 iPods per year
250 working day year
Lead time for orders is 3 working days

Demand per year

d=
Number of working days in a year
= 8,000/250 = 32 units
ROP = d x L
= 32 units per day x 3 days = 96 units
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Safety Stock
Used when demand is not constant or certain
Defined as extra units of inventory carried as
protection against possible stockouts
Use safety stock to achieve a desired service
level and avoid stockouts

ROP = d x L + ss

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Safety Stock

Inventory level

Figure 12.8

Minimum demand during lead time

Maximum demand during lead time
Expected demand during lead time
ROP = 350 + safety stock of 16.5 = 366.5
ROP

Safety stock

0
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Place Lead
time Receive
order
order

16.5 units

Time
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Example 12.5: A computer components manufacturer uses approximately

10,000 blank CDs annually. The CDs are used at a safety rate during the 250
workdays that the plant operates. The price of each blank CD is $7.00 and the
annual carrying cost is $0.5 per unit per year. The ordering cost is $50. The
lead time for ordering these CDs is ten days. In addition, due to poor supplier
delivery, the company has decided to maintain a safety stock of 1000 units.
(1) The optimal order size each time the inventory needs to be replenished.
D = 10,000 per year
P = $7.00
H = $0.5 per unit per year
S = $50 per order
L = 10 days
Safety stock = 1000 units

2 DS
Q
H
*

2 10,000 50

0.5
1415

Available working days = 250 days

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D = 10,000 per year

P = $7.00

(2) Number of workdays between each

purchase order placed (order cycle time).
available workdays
D
Q*
250

10000
1415
35.4 days

H = $0.5 per unit per year

S = $50 per order
L = 10 days
Safety stock = 1000 units
Available working days = 250 days
Q* = 1415 units

(3) Average inventory level of CDs

Since the safety stock is used, the
average inventory level increases by
the amount of safety stock
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Q*
SS
2
1415

1000
2
1708 units

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D = 10,000 per year

(4) Maximum inventory level of CDs

P = $7.00
H = $0.5 per unit per year The maximum inventory
level increases by the
S = $50 per order
amount of safety stock
L = 10 days

Q* SS
1415 1000
2415 units

Safety stock = 1000 units

Available working days = 250 days
Q* = 1415 units

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(5) Reorder point in units

ROP d * L SS
10000

10 1000
250
1400 units
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(6) Annual setup/Ordering cost

D = 10,000 per year

C = $7.00

H = $0.5 per unit per year Setup/Ordering cost

does not change
S = $50 per order
L = 10 days
Safety stock = 1000 units

(7) Annual carrying (holding) cost

Available working days = 250 days

Q* = 1415 units

D
10000
S
50 $353
*
Q
1415

Carrying cost
increases

Q*

1415

SS H
1000 0.5 $854
2

(8) Total inventory cost

TAC $353 $854 $1207
When safety stock is used,
optimal holding cost optimal setup/carrying cost
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Safety Stock
Q
Average Inventory SS
2
Max Inventory Q SS
Q

Annual carrying cost

SS H
2

TAC ordering cost carrying cost

D
Q

S
SS H
Q
2

ROP = d L + SS
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Modelling inventory
management system at
distribution company: Case
Study

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