Inventory Stockholding Policy Model

Abstract

AbstractManaging spare parts inventory is one strategy that needs to be adequately planned to support a fertilizer company’s production. Stockholding policy is part of integrated spare part management, where spare part classification is determined based on specific inventory criteria. This paper conducts an exploratory study on the design of the stockholding policy model in a fertilizer company in Indonesia. The stockholding policy model will be built with specific inventory criteria using multicriteria analysis: (1) Operation mode, (2) Failure mode, (3) Lead time, (4) Usage, and (5) Price. The results reveal that a fertilizer company’s stockholding policy model optimizes spare part inventory management. Optimum inventory is indicated by ITO (Inventory Turn Over) and Inventory value after stockholding policy model implementation. Knowing the importance and function of the stockholding policy model can develop and strengthen the company to improve spare part inventory strategy and support optimum operations for fertilizer company’s production.