DETERMINATION OF IDEAL WAREHOUSING CAPACITY AND INVENTORY CONTROL OF NPK FERTILIZER RAW MATERIALS (DAP, KCL POWDER, CLAY) USING MIN MAX AND MONTECARLO SIMULATION METHODS
Adam Mulia, Joko Sulistio
Universitas Islam Indonesia
Abstract
One of the factors that influence the production process is controlling raw material inventories. The availability of raw material inventory makes the inventory condition not overstock or stockout, and then with Inventory control can be done by knowing the ideal warehouse capacity for each raw material. The issue of raw material inventory, makes many companies try to continue to improve the inventory system of raw materials they have. In this study the aim was to find the ideal warehouse capacity with the min-max method and evaluate the condition of the system before and after the changes using the Monte Carlo simulation to avoid overstocks and stockouts. Based on the simulation results of the real system model it is known that each raw material several times experiences less inventory than safety stock so that the possibility of a stockout will occur more frequently, and from the intensity of ordering it can be categorized frequently. After applying the min-max results, the condition of the raw material inventory has improved. Based on the results of this study, the solutions provided could potentially improve the inventory system, namely by increasing the warehouse capacity for each raw material. The ideal warehouse capacity can refer to the maximum capacity of raw material inventory that has been obtained so that the increase in warehouse capacity for DAP raw materials (12,029.70 tons), KCL Powder (9,644.56 tons) and CLAY (5,505.00 tons)
Keywords: Inventory Control, Overstock, Stockout, MIN-MAX, Monte Carlo
Topic: Industrial Engineering