OPTIMAL STOCK LEVEL AND INVENTORY POLICY
UTM-CIAM helped EPMB to improve their inventory system and determine the new production plan.
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The Problem
The finished goods will be delivered to the customer together with the pallets. The company is currently facing a problem in meeting their customer demand causing a low service level. This is mainly due to production downtime (which mainly due to stock outs at the supplier-facing inventory). Based on the Production Downtime Information Forms (PDIF), the reason for each production downtime is due to stock outs of its particular sub-components. The failure of the supplier to deliver the components as required by the plant is seen to be the major problem.
The solution
For the short term solution, UTM-CIAM helped EPMB to develop a mathematical model and a prototype system in EXCEL in determining the optimal production quantity and allocation of resources.
Team members:Â Mohd Omar, Zaitul Marlizawati Zainuddin, Karina Piwarska, Nur Arina Bazilah Aziz, Nurmaya Musa, Ahmad Kadri Junoh, Nur Aisyah Omar, Nurul Farihan Mohamed, Nurhidayu Idris, Geethampari Subramaniam, Rasvini Rajendran, Norzaida Abas, Maslin Masrom, Ashkan Memari, Muhammad Saufi Tarmizi, Nur Intan Liyana Mohd Azmi, Noraimi Azlin Mohd Nordin