Planning of Raw Material for Wooden Pallet usingProbabilisticInventory Model

Abstract

Wooden pallet industry often experienced either shortage or exceed of raw materials which makes the industry suffer for a significant losses due to the company's inability to provide products to fulfill the demand. This deficiency is due to the fact that the company did not have a proper inventory planning of raw material required for the production, as a consequencethe company often has to buy the raw material at a higher price in anurgent condition. In order to make a cost efficiency, the activities of purchase and usage of this raw materials need to be planned at the best possible cost so that companies can avoid unnecessarywaste of operational costs. With the unpredicted of raw material resources used by the company and quantity of consumer demand, inventory policy planning is needed to determine the most economical quantity required and the time for the company to placethe order in these probabilistic conditions.

Application of Analytical Hierarchy Process (AHP) Method in Determining Commercial Vehicle Type of Supply Considering Owning and Operating Cost

“…One of the criteria used to make a decision to purchase a commercial vehicle is by using the calculation of owning & operating cost so that customers can calculate the estimated total cost of ownership of the vehicle to be purchased. In addition, the previous research shown that the lack of inventory will likewise fetches an impact on the rose frequency of ordering raw materials as well as the raise of total cost of other components [18]. According to Dania's research [19], total cost ownership is the total cost incurred by the customer on the vehicle that can be calculated with a reliable estimate, the total cost of the vehicle consists of the cost of ownership (owning cost) and operating cost (operating cost).…”