4th African International Conference on Industrial Engineering and Operations Management

Shortage and Dead Stock Mitigation in Heavy Equipment Spare Parts Warehouse Using Integration of ABC Analysis Methods, Analytic Hierarchy Process and EOQ

Dikky Putra Rupawan & Dendi Ishak
Publisher: IEOM Society International
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Track: Logistics
Abstract

The growth of industries that use heavy equipment in Indonesia continues to increase so that the use of spare parts has also increased significantly. Most of these spare parts are still imported from outside so that it will needs warehouse storage in Indonesia. Spare parts are included in the perishable goods commodity and are urgently needed to support the operations of a unit, however, currently many warehouse of spare parts are still being managed not in accordance with the principles of good warehouse practice. The spare parts warehouse has many types of items, so there is a need for grouping to suit different levels of importance and usage, so it is necessary to align these priorities as a reference for further inventory management with the aim of mitigating shortages and dead stock inventory. This study only focuses on the type of fork-lift and for the flow of research it is carried out by grouping all items into three classes according to the abc analysis rules, then the three classes are continued with Multi-Criteria Decision Analysis that is Analytic Hierarchy Process to get the priority ranking. After that, from the ranking results, the highest ranking is taken indicating the highest priority will be managed further with economic order quantity in the hope that inventory management for parts with the highest priority class can be managed better.

Published in: 4th African International Conference on Industrial Engineering and Operations Management, Lusaka, Zambia

Publisher: IEOM Society International
Date of Conference: April 4-6, 2023

ISSN/E-ISSN: 2169-8767