Open AccessDetermination of lot size orders of furniture raw materials using dynamic lot sizing method
Author(s) -
Much. Djunaidi,
Brillian A. R Devy,
Edy Setiawan,
Ratnanto Fitriadi
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/674/1/012050
Subject(s) - sizing , raw material , production (economics) , process (computing) , computer science , holding cost , inventory control , manufacturing engineering , process engineering , business , operations management , engineering , economics , art , chemistry , organic chemistry , visual arts , macroeconomics , operating system
Wisanka is an indoor and outdoor furniture manufacture and export company in Indonesia. In the production activities, inventory control of raw materials is very important and needs to be handled properly so that the production process can run smoothly and orders from consumers can be fulfilled in a timely manner. Problems faced in the company that there is no optimal planning in determining the size of ordering of raw materials. Reservations made during this only based on the quantity of raw materials ordered can meet the needs during a certain period without considering the total cost incurred. The main purpose of this research is to determine the policy of controlling raw material requirement for the coming period by paying attention to the inventory cost incurred. In this research used lot sizing technique based on Silver Meal algorithm and Wagner Within algorithm. The use of lot sizing technique based on Wagner Within algorithm resulted in a cost efficiency of 3.6% for klabang material while Silver Meal of 2.9% for semi-polished rattan and 3.4% for leles compared to the lot sizing technique applied by the company.