Inventory planning analysis for vehicle spare parts by using Continuous Review method: A green engineering approach

Abstract

PT Y is the largest dealer in the eastern part of Indonesian focuses on selling, supply, and maintenance of vehicle spare parts. This research aims to determine the optimal quantity order and reorder, and safety stock to anticipate the possibility of stockout or extra cost, and to fulfill the customer needs. We implemented the ABC analysis for vehicle spare parts Mirage type, then create scheduling for spare parts in class A that normally distributed. In this plan, future demand determined which later improve the inventory management of the spare parts by determining the order quantity, reorder point, safety stock, and total cost of inventory by using the Continuous Review method, which results in the optimal value. The Continuous Review method obtains the total saving for inventory cost up to 54.21% and able to be the optimal solution applied by the company in the future.

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