IMPLEMENTING PERIODIC REVIEW – VARIABLE ORDER QUANTITY SYSTEM IN INVENTORY MANAGEMENT: A CASE STUDY HEAVY EQUIPMENT COMPANIES, KUTAI BARAT

Abstract

One of the processes to minimize downtime unit is the availability of good spare parts. In this study, we will discuss how the process of developing reorder quantity procedures in order to get the availability of spare parts is quite good. in this study, the desired goal is the result of the researcher at 90%. The DMAIC method is used in this study to improve the existing processes in the reordering point. Periodic review with demand fluctuations, vendors holding stock, and inspection programs is an implementation carried out in the inventory process in order to get the availability of slow-moving spare parts, fast-moving spare parts, and spare parts that are monitored for damage. The results obtained are reordering quantity using Inspection which contributes 13% and casting using holding stock vendors based on customer brainstorming contributed 38% while the forgetfulness made by the distributor with periodic review modeling system contributed 43% so the accuracy of the prediction in January was 94% this support is greater than 2021, which is 88%, so there is an increase of 6% and a reduction in the delay time for repairs from 2021, the average order delay is 5.5 days to an order delay of 3.9 days.