Hi all, good day,
In the previous discussion, we learned about Reorder Point for basic. To make it becomes secure and confidence in company site, we have to add safety stock as the lowest level. This safety stock level is covering uncertainty orders from customer, especially for high order. Also, safety stock used to recover the procurement lead time to supplier with long lead time. Therefore, for finalize in inventory system for ROP, the formula of ROP updated as:
ROP = Safety Stock + Demand * Lead Time
For the minimum level as Safety Stock and for the maximum level as ROP+Safety Stock
Qmax = ROP + Safety Stock
Qopt = ROP
Qmin = Safety Stock
Usually, most of supplier would do replenishment when the stock on hand has reached the ROP or Buyer team would create PO when stock on hand has reached the ROP.
Hoped that the little information can inspire you all.
Thank you and good day
Created by: Eka Angga Riandhika
Wednesday, March 13, 2013
Saturday, October 20, 2012
Inventory Calculation
Hi all, how are you?
In the previous discussion, we discussed about Inventory right?
So, let we discuss about inventory calculation simply guys. Basically, the inventory is available caused by fluctuates demand. That's why, we should calculation and determine the inventory calculation.
Before we calculation the inventory, we should know the historical data of demand or consumptions.
Historical data can be found in every company data record. Usually, it showed by monthly or weekly consumption.
If our historical data showed in monthly, we should convert it in days.
ADU (Average Daily Usage) = AMU (Average Monthly Usage) / Work Days
Let say in these example, we use 20 work days.
Ex: Month1 Month2 Month3 ==> AMU ==> ADU
150 200 120 (150+200+120)/3 = 157 157/20 = 7.85
After we calculate the average daily usage, now we could determine the inventory should be stocked in our warehouse. The inventory calculation can be determined by days of inventory we want.
For example, we want our inventory can cover 3 days production:
Inventory (Qty) = 3 (days) x 7,85 (Qty/days)
Inventory (Qty) = 23.55 Qty
Therefore the company will build inventory minimum for 3 days coverages.
Created by: Eka Angga Riandhika
In the previous discussion, we discussed about Inventory right?
So, let we discuss about inventory calculation simply guys. Basically, the inventory is available caused by fluctuates demand. That's why, we should calculation and determine the inventory calculation.
Before we calculation the inventory, we should know the historical data of demand or consumptions.
Historical data can be found in every company data record. Usually, it showed by monthly or weekly consumption.
If our historical data showed in monthly, we should convert it in days.
ADU (Average Daily Usage) = AMU (Average Monthly Usage) / Work Days
Let say in these example, we use 20 work days.
Ex: Month1 Month2 Month3 ==> AMU ==> ADU
150 200 120 (150+200+120)/3 = 157 157/20 = 7.85
After we calculate the average daily usage, now we could determine the inventory should be stocked in our warehouse. The inventory calculation can be determined by days of inventory we want.
For example, we want our inventory can cover 3 days production:
Inventory (Qty) = 3 (days) x 7,85 (Qty/days)
Inventory (Qty) = 23.55 Qty
Therefore the company will build inventory minimum for 3 days coverages.
Created by: Eka Angga Riandhika
Inventory
Hi All, How are you? Always good, right?
I would to share about inventory from point view of me. So, what is inventory? Globally, inventory is a buffer in company's site to cover the fluctuates demand. Sometimes, inventory is a waste for company, because it not moved, it spends holding cost, spends maintenance cost, not gives value, consumes place, and also gives discrepancy for production (when we cannot manage it well).
However, in fact we need inventory to make sure fluctuates demand of customers keep filled and not missing.
The number of inventory in a company should be determined by the supply of suppliers. Supplier with long lead time will drive company to build inventory more for coverages. What is lead time? Basically lead time categorized to delivery lead time and manufacture lead time.
Delivery lead time is a time which needed for supplier to deliver its parts from supplier's site till its customer site. It means supplier has build stock in their site.
Manufacturing lead time is a time which needed for supplier to manufacture parts (including waiting supply from its suppliers) and deliver it to its customer site. It means, they have no stock or their stock is low or they need to produce the parts in their site which wait supply from the tiers. Sometimes, manufacturing lead time is enable for supplier where the function only as a distributor, not a manufacturer.Therefore, they need a long time to wait parts for their manufacturer.
Based on the figure above, we can imagine when company stocks less parts in its site, meanwhile their supplier lead time is long, it means their production line will be stop frequently.
Therefore inventory is a useful waste for company. But, we could make the inventory be lean and optimized which will be explained in Inventory Optimization.
Created by: Eka Angga Riandhika
I would to share about inventory from point view of me. So, what is inventory? Globally, inventory is a buffer in company's site to cover the fluctuates demand. Sometimes, inventory is a waste for company, because it not moved, it spends holding cost, spends maintenance cost, not gives value, consumes place, and also gives discrepancy for production (when we cannot manage it well).
However, in fact we need inventory to make sure fluctuates demand of customers keep filled and not missing.
The number of inventory in a company should be determined by the supply of suppliers. Supplier with long lead time will drive company to build inventory more for coverages. What is lead time? Basically lead time categorized to delivery lead time and manufacture lead time.
Delivery lead time is a time which needed for supplier to deliver its parts from supplier's site till its customer site. It means supplier has build stock in their site.
Manufacturing lead time is a time which needed for supplier to manufacture parts (including waiting supply from its suppliers) and deliver it to its customer site. It means, they have no stock or their stock is low or they need to produce the parts in their site which wait supply from the tiers. Sometimes, manufacturing lead time is enable for supplier where the function only as a distributor, not a manufacturer.Therefore, they need a long time to wait parts for their manufacturer.
(Figure of Lead Time)
Based on the figure above, we can imagine when company stocks less parts in its site, meanwhile their supplier lead time is long, it means their production line will be stop frequently.
Therefore inventory is a useful waste for company. But, we could make the inventory be lean and optimized which will be explained in Inventory Optimization.
Created by: Eka Angga Riandhika
Saturday, October 13, 2012
About Me
Dear all,
How are you? Hope you always in good condition. Let me introduce my self, my nick name is Angga and my full name is Eka Angga Riandhika. Currently I work in a worldwide manufacturing company. I studied in Industrial Engineering major of ITS (Institut Teknologi Sepuluh Nopember). My focused studies about simulation, optimization, statistic, and also supply chain. I like doing sports such as badminton, swimming, and jogging, besides I like eat both traditional and modern food, doing communication and make friends. I am people with high targeting, fast learner, adaptive, discipline, able to work under pressure, and also work both individual and team.
I like concept something and make it be real and implemented. Sometimes, my ideas looked so impossible to be implemented, but I have friends and great teams which able and available to listen my ideas and also support my idea. If I allocated in a job, I prefer as a concept 80% and executor 20%. Why? I like concept and brief to the teams globally and when they need more detail, I explain it deeply.
My experiences professionally were doing feasibility study for education section, doing distribution analysis for cement industry, doing simulation for container depot re-layout, doing FPY (First Pass Yield) improvement, doing debug consolidation, doing VMI (Vendor Manage Inventory), and now deploying consignment.
That's all about me generally and thank you for let me share my little things in this blog.
Created by: Eka Angga Riandhika
How are you? Hope you always in good condition. Let me introduce my self, my nick name is Angga and my full name is Eka Angga Riandhika. Currently I work in a worldwide manufacturing company. I studied in Industrial Engineering major of ITS (Institut Teknologi Sepuluh Nopember). My focused studies about simulation, optimization, statistic, and also supply chain. I like doing sports such as badminton, swimming, and jogging, besides I like eat both traditional and modern food, doing communication and make friends. I am people with high targeting, fast learner, adaptive, discipline, able to work under pressure, and also work both individual and team.
I like concept something and make it be real and implemented. Sometimes, my ideas looked so impossible to be implemented, but I have friends and great teams which able and available to listen my ideas and also support my idea. If I allocated in a job, I prefer as a concept 80% and executor 20%. Why? I like concept and brief to the teams globally and when they need more detail, I explain it deeply.
My experiences professionally were doing feasibility study for education section, doing distribution analysis for cement industry, doing simulation for container depot re-layout, doing FPY (First Pass Yield) improvement, doing debug consolidation, doing VMI (Vendor Manage Inventory), and now deploying consignment.
That's all about me generally and thank you for let me share my little things in this blog.
Created by: Eka Angga Riandhika
Life Cost in Batam
Hi all, happy day.
For you who will live in Batam. I would to share how the Batam it self generally.
Globally, Batam is a island, not a city. It near from or to Singapore and also from or to other islands in Indonesia, especially Bintan. Based on information from people there, for reach between end to end of area, you just need 45 minutes maximum. Why? basically the traffic is also good not crowded. When you arrive in the first time by air, you must be confuse, because in the right and left during your trip from Hang Nadim international airport to city will looked so green and red. Means, full of trees and also the red land which shows blank area. If you think that Batam full of resorts, that is true, because the island is rounded by sea. Therefore, some investor make it as resorts.
Then, let me share the life style in Batam. In Batam, if you think everything is cheap, totally wrong. Why? Basically, the price for eats and transportation is quite high. Let me share the price for live in Batam:
Eats: @ >= 15,000 IDR
Transport: @>= 2,000 IDR (shortest distance such as internal industry area)
Rent House: a month >= 300,000 IDR (the most simple rent house)
Total in a month (minimum):
Eat: ((2 x 5 work days x 15,000)+(3 x 2 days off x 15,000)) x 4 weeks =1.000,000 IDR
Transport: ((2 x 5 work days x 2,000)+(2 x 1 day off x 2,000)) x 4 weeks = 96,000 IDR
Rent House: 300,000 IDR
Miscellaneous: 200,000 IDR
Total: 1,596,000 IDR
That is the minimum spent for live in Batam,if you categorized to the shopaholic people, you should prepare your cash more than that.
For your information, you could find the cheap gadget in Batam, especially in some mall such as Lucky Plaza and Nagoya Hill, but the gadget's warranty is local for Batam or warranty from Singapore.
The recreation places you can find are Jembatan Barelang, Kampung Vietnam, Pantai Mirota, Resorts, etc.
The foods mostly are same in Java, like Ayam Bakar (original, bumbu kacang, cabe hijau), Nasi Campur, Nasi Pecel, Soto, Nasi Padang, Soups, and many more.
(Source: Figure of Batam)
Created by: Eka Angga Riandhika
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