Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah
Inventory creates a significant cost to a firm in the form of the ordering cost, shortage cost, holding cost and also the cost of the goods itself. Managing inventory is always a big challenge for firms in order to balance these operating costs and maintain customer’s service. In this paper, a case...
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| Format: | Article |
| Language: | en |
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UiTM Cawangan Perlis
2018
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| Online Access: | https://ir.uitm.edu.my/id/eprint/55257/1/55257.pdf https://ir.uitm.edu.my/id/eprint/55257/ https://crinn.conferencehunter.com/ |
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| _version_ | 1833070432375275520 |
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| author | Baharom, Nuridawati Hamzah, Pa’ezah |
| author_facet | Baharom, Nuridawati Hamzah, Pa’ezah |
| author_sort | Baharom, Nuridawati |
| building | Tun Abdul Razak Library |
| collection | Institutional Repository |
| content_provider | Universiti Teknologi Mara |
| content_source | UiTM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | Inventory creates a significant cost to a firm in the form of the ordering cost, shortage cost, holding cost and also the cost of the goods itself. Managing inventory is always a big challenge for firms in order to balance these operating costs and maintain customer’s service. In this paper, a case study of an electronic manufacturing firm was used to illustrate the use of the Monte Carlo simulation to improve the current inventory system for sensor cable. A simulation model mimicking the current inventory system was developed, and used to study the current system and alternative reorder point policies. Various reorder points were experimented to determine the reorder policy that results in the lowest average total inventory cost per week. The simulation experiments allow the decision maker to make good purchasing decisions in order to avoid ordering excessive raw materials, which lead to higher inventory cost to the company. |
| format | Article |
| id | my.uitm.ir-55257 |
| institution | Universiti Teknologi Mara |
| language | en |
| publishDate | 2018 |
| publisher | UiTM Cawangan Perlis |
| record_format | eprints |
| spelling | my.uitm.ir-552572022-09-26T01:58:36Z https://ir.uitm.edu.my/id/eprint/55257/ Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah jcrinn Baharom, Nuridawati Hamzah, Pa’ezah Algorithms Computer simulation Detectors. Sensors. Sensor networks Inventory creates a significant cost to a firm in the form of the ordering cost, shortage cost, holding cost and also the cost of the goods itself. Managing inventory is always a big challenge for firms in order to balance these operating costs and maintain customer’s service. In this paper, a case study of an electronic manufacturing firm was used to illustrate the use of the Monte Carlo simulation to improve the current inventory system for sensor cable. A simulation model mimicking the current inventory system was developed, and used to study the current system and alternative reorder point policies. Various reorder points were experimented to determine the reorder policy that results in the lowest average total inventory cost per week. The simulation experiments allow the decision maker to make good purchasing decisions in order to avoid ordering excessive raw materials, which lead to higher inventory cost to the company. UiTM Cawangan Perlis 2018 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/55257/1/55257.pdf Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah. (2018) Journal of Computing Research and Innovation (JCRINN) <https://ir.uitm.edu.my/view/publication/Journal_of_Computing_Research_and_Innovation_=28JCRINN=29/>, 3 (2): 6. pp. 38-47. ISSN 2600-8793 https://crinn.conferencehunter.com/ 10.24191/jcrinn.v3i2.93 10.24191/jcrinn.v3i2.93 10.24191/jcrinn.v3i2.93 |
| spellingShingle | Algorithms Computer simulation Detectors. Sensors. Sensor networks Baharom, Nuridawati Hamzah, Pa’ezah Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah |
| title | Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah |
| title_full | Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah |
| title_fullStr | Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah |
| title_full_unstemmed | Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah |
| title_short | Inventory optimization using simulation approach / Nuridawati Baharom and Pa’ezah Hamzah |
| title_sort | inventory optimization using simulation approach / nuridawati baharom and pa’ezah hamzah |
| topic | Algorithms Computer simulation Detectors. Sensors. Sensor networks |
| url | https://ir.uitm.edu.my/id/eprint/55257/1/55257.pdf https://ir.uitm.edu.my/id/eprint/55257/ https://crinn.conferencehunter.com/ |
| url_provider | http://ir.uitm.edu.my/ |