Model of Multi Product Classification with Regular Demand on Inventory System in a Raw Material Supply Company

Tri Febrion, Joniarto Parung


The right strategy in inventory is the main point in maintaining adequate and guaranteed supply continuity. Inventory strategies are becoming important but complex when the number of items that must be prepared is increasing. In this regard, it is necessary to analyze the product groupings in several classifications. Prioritized products receive special attention.

The same problem is faced by PT PEKA, an import raw material distribution company that has nearly 2000 product items. Based on data demand is known, that the company's demand does not have a fixed pattern. Many products have regular and irregular demand, even the number of regular demand is very volatile. Companies often experience excess stock or vice versa due to lack of stock demand according to predictions, long lead times and product self-life that varies. Related to this, alternative product groupings or classifications are needed in accordance with company conditions. The company currently has frozen and unfrozen products, has items made from natural and non-natural raw materials and has a short and relatively long lead time.

PT. PEKA groups products in various stages, which lead to a combination of ABC and XYZ classifications. Demand of priority items generated from the grouping is then forecast according to the model that gives the smallest MSE / MAD. Furthermore, a case study was carried out to calculate the Total Relevance Cost (TRC) from the calculation results to be compared with the real TRC. TRC according to the classification results was Rp. 1,293,370,148, - lower than the actual condition TRC, which amounted to Rp. 1,805,887,874, -


inventory management, ABC analysis, multi product

Full Text:



Chen JX. 2011, Peer-estimation formultiple criteria ABC inventory classification. Computers & Operations Research 2011;38(12):1784–91.

Dwiantara,L dan Sumarto, RH.2004. Manajemen Logistik. Jakarta:Grasindo.

Gasperez, Vincent. 1998. Production Planning and Inventory Control. Jakarta: Gramedia Pustaka Utama

George Nenes , Sofia Panagiotidou, George Tagaras, 2010, Inventory management of multiple items with irregular demand : A case study, European Journal of Operational Research 205 (2010):313-324

Ivanov Dmitry, Tsipoulanidis A, Schonberger J, 2019. Global Supply Chain and Operations Management, second edition. Springer

Jay, Heizer dan Barry, render. 2014, Operation Management, sustainability and supply chain management, eleventh edition. Pearson

Jiapeng Liu, Xiuwu Liao, wenhong Zhao, Na Yang. 2015, A classification approach based on the outranking model for multiple criteria ABC analysis, Omega 63(2016):19-34

Ma LC. 2012, A two-phase case-based distance approach for multiple-group classi- fication problems. Computers and Industrial Engineering2012;63(1):89–97.

Makridakis. 1999. Metode dan aplikasi peramalan. Edisi 2. Jakarta: Binarupa Aksara

Mohammaditabar D, Ghodsypour SH, O’Brien C.2011, Inventory control system design by integrating inventory classification and policy selection

Mulyadi, 2007. Sistem Perencanaan dan Pengendalian Manajemen. Salemba Empat. Jakarta.

Parung, J., 2012, Merancang penelitian berbasis outcome, paradigma dan strategi,Brilian Internasional Surabaya, 2012



  • There are currently no refbacks.

Copyright (c) 2020 Majalah Ilmiah Bijak

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

View My Stats



ISSN 1411-0830 (Media Cetak) 2621-749X (Media Online)
Email :  [email protected] / [email protected]