Inventory Management Via Topsis Analytical Hierarchy Process (AHP) Method Embedded With Economic Order Quantity
Inventory management is the process of keeping track of all the material on the manufacturing industry has in its industry stock. Effective inventory management aligns all inventory types to the efficient creation of the production process to finished products and delivery to the customer's sat...
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| Format: | Thesis |
| Language: | English English |
| Published: |
2020
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| Online Access: | http://eprints.utem.edu.my/id/eprint/25418/1/Inventory%20Management%20Via%20Topsis%20Analytical%20Hierarchy%20Process%20%28AHP%29%20Method%20Embedded%20With%20Economic%20Order%20Quantity.pdf http://eprints.utem.edu.my/id/eprint/25418/2/Inventory%20Management%20Via%20Topsis%20Analytical%20Hierarchy%20Process%20%28AHP%29%20Method%20Embedded%20With%20Economic%20Order%20Quantity.pdf |
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| Summary: | Inventory management is the process of keeping track of all the material on the manufacturing industry has in its industry stock. Effective inventory management aligns all inventory types to the efficient creation of the production process to finished products and delivery to the customer's satisfaction. Ineffective inventory management either beyond having too much inventory or too little inventory, poor inventory management causes inefficiencies of production activity. This will be having reordering inventory from suppliers at last minute or increase risk of mistakes non-fulfilled customer orders on time. The consequence of poor inventory management can cause customers to withdraw orders or industry pay compensation due to order delivery date no achieve as agreement. Due to the poor inventory management problem, this project purpose to use economic order quantity (EOQ) application in a rubber manufacturing company and optimization of the economic order quantity (EOQ) with Technique for Order Preference by Similarity to Ideal Solution Analytic Hierarchy Process (TOPSIS-AHP). Nowadays, the choice of suppliers and the supplier material performance assessment are very important. This become the major challenges in the manufacturing industry which mainly faced by supply chain managers or purchaser. The progress to evaluating each supplier and selecting the best supplier are become complicated tasks. In the decision-making process, there are different criteria andalternatives must take into consideration. The objective is to determine and select the best supplier of inventory by using the Analytic Hierarchy Process (AHP) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method. The economic order quantity (EOQ) model was used to calculate the best quantity of the material. Therefore, at the end of this project concluded the best supplier is supplier A with its material. The result is consistent in all methodologies. The economic order quantity (EOQ) to order upon purchasing of new inventory is 2847 kg |
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