Inventory Planning at Painting Section in the Indonesian Automotive Industry

Abstract

An increase of competition in the Indonesian automotive industry due to an emergence of new products and the presence of new players has pushed the companies in this industry to have proper planning for inventory. Many models are available in the literature to support good planning for inventory, However, not all models are appropriate to be used in inventory planning for a specific department in the Automotive industry. Economic impacts such as cost can be used as consideration in selecting the appropriate model. This paper aims to compare models for inventory planning at painting section in one of the Indonesian automotive industry based on inventory cost. Economic Order Quantity (EOQ), Kanban and Economic Order Interval (EOI) are models compared in this study. The results of this study indicated that EOQ and EOI are the inventory model that produces the lowest inventory cost.