The Implementation of ABC Classification and (Q, R) with Economic Order Quantity (EOQ) Model on the Travel Agency


  • Anggi Oktaviani Mercu Buana University
  • Heru Subawanto Mercu Buana University
  • Humiras Hardi Purba Mercu Buana University



ABC Classifications, (Q, R) Classifications, Economic Order Quantity (EOQ)


To support customer loyalty programs, the travel agencies gave a souvenir to their customers. In one of the travel agencies in Jakarta, the demand for travel agency services could not be ensured. This had an impact on inventory items that were surplus to requirements. Inventory management was done by combining classifications ABC and (Q, R) with Economic Order Quantity (EOQ) model, which was usually used for uncertain demand. With “A” classification of the goods, two model (Q, R) scenarios were made and then simulated with software Arena. From these two scenarios, the results show that both have a tendency to decline, or the stockouts occur. However, the second scenario is more optimistic because a dummy variable is added the second scenario. Thus, the tendency is stable and does not decline.


Plum Analytics

Author Biographies

Anggi Oktaviani, Mercu Buana University

Master of Industrial Engineering Program

Heru Subawanto, Mercu Buana University

Master of Industrial Engineering Program

Humiras Hardi Purba, Mercu Buana University

Master of Industrial Engineering Program


Axsäter, S. (2006). Inventory control (International series in operations research & management science).

Berlin: Springer.

Borle, P. S., Tapare, V. S., & Pranita, A. (2014). Drug inventory control and management: A case study in Rural Health Training Center (RHTC), Tasgaon. Indian Journal of Public Health Research & Development, 5(3), 174. Doi: 10.5958/0976-5506.2014.00298.8

Burns, D. M., Cote, M. J., & Tucker, S. L. (2001). Inventory analysis of a pediatric care center. Hospital Materiel Management Quarterly, 22(3), 84-90.

Chen, M., & Zhuo, F. (2010). A partial backlogging inventory model with time-varying demand during shortage period. International Journal of Intelligent Systems and Applications, 2(1), 23-29.

Eric, M., Stefanovic, M., Djordjevic, A., Stefanovic, N., Misic, M., Abadic, N., &Popovic, P. (2016). Production process paramet er optimization with a new model based on a genetic algorithm and ABC classification method. Advances in Mechanical Engineering, 8(8), 1-18.

Farrukh, Z., Hussain, S., Jahanzaib, M., Wasim, A., & Aziz, H. (2015). A simple multi-criteria inventory classification approach. University of Engineering and Technology Taxila. Technical Journal, 20(4), 70-78.

Janamanchi, B. (2011). Analysis of economic order quantity under ecommerce paradigm. Competition Forum, 9(2), 339-347

Kavishwar, S. M., Daf, S. P., & Daharwal, P. R. (2014). Effect of economic order quantity at small scale textile mill: A case study. Research Journal of Engineering and Technology, 5(1), 1-4.

Krishnaraj, R. B., & Ramasamy, K. (2013). An EOQ model for linear deterioration rate of consumption with permissible delay in payments with special discounts. Journal of Applied Mathematics and Bioinformatics, 3(2), 35-44.

Lee, P., & Joglekar, P. (2012). Continuously increasing price in a gradual usage inventory cycle: An optimal strategy for coordinating production with pricing for a supply chain. Academy of Information and Management Sciences Journal, 15(1), 105-116.

McGregor, N. C. (1996). Investment horizons and sustainable tourism: Implications for EU policy. European Environment, 6(6), 194-203.

Nakandala, D., Lau, H., & Zhang, J. (2014). Optimization model for transportation planning with demand uncertainties. Industrial Management & Data Systems, 114(8), 1229-1245. 10.1108/IMDS-06-2014-0192.

OuYang, L. Y., Hsieh, T. P., Dye, C. Y., & Chang, H. C. (2003). An inventory model for deteriorating items with stock-dependent demand under the conditions of inflation and time-value of money. The Engineering Economist, 48(1), 52-68.

Panda, S., Saha, S., & Basu, M. (2009). An EOQ model for perishable products with discounted selling price and stock dependent demand. Central European Journal of Operations Research, 17(1), 31-53. http://dx.doi. org/10.1007/s10100-008-0073-z

Roda, I., Macchi, M., Fumagalli, L., & Viveros, P. (2014). A review of multi-criteria classification of spare parts. Journal of Manufacturing Technology Management, 25(4), 528-549 .http://dx.doi. org/10.1108/JMTM-04-2013-0038

Rong, L. X. (2011). Chance-constrained programming EOQ model based on uncertainmeasure. Applied Mechanics and Materials, 50, 150-154. http://dx.doi. org/10.4028/

Russel, R. S., & Taylor, B. W. (2011). Operations management: Creating value along the supply chain (7th ed.). New Jersey, USA: Wiley

Shen, B. (2015). Service operations optimization: Recent development in supply chain management. Mathematical Problems in Engineering, 2015, 1-7.

Stanford, R. E., & Martin, W. (2007). Towards a normative model for inventory cost management in a generalized ABC classification system. The Journal of the Operational Research Society, 58(7), 922-928.

Sucky, E. (2004). Coordinated order and production policies in supply chains. OR Spectrum, 26(4), 493-520. doi:

Syntetos, A. A., Keyes, M., & Babai, M. Z. (2009). Demand categorisation in a European spare parts logistics network. International Journal of Operations & Production Management, 29(3), 292-316. http://

Taha, H. A. (2007). Operations Research: An introduction (8th ed.). New Jersey, USA: Pearson Prentice-Hall

Teunter, R. H., Babai, M. Z., & Syntetos, A. A. (2010). ABC classification: Service levels and inventory costs. Production and Operations Management, 19(3), 343-352.

Tripathy, P. K., Wee, W. M., & Majhi, P. R. (2003). An EOQ model with process reliability considerations. Journal of the Operational Research Society, 54(5), 549-554.

Van Kampen, T. J., Akkerman, R., & Pieter van Donk, D. (2012). SKU classification: A literature review and conceptual framework. International Journal of Operations & Production Management, 32(7), 850-876.

Welford, R., Ytterhus, B., & Eligh, J. (1999). Tourism and sustainable development: An analysis of policy and guidelines for managing provision and consumption. Sustainable Development, 7(4), 165-177.

Young, S. T., & Nie, W. D. (1992). A cycle-count model considering inventory policy and record variance. Production and Inventory Management Journal, 33(1), 11.

Zhang, Z. M., Li, J. S., Song, P., & Yan, Q. F. (2013). A classification scheme of ECM spares based on FAHP. Applied Mechanics and Materials, 411,1762-1766.

Zinn, W., & Charnes, J. M. (2005). A comparison of the economic order quantity and quick response inventory replenishment methods. Journal of Business Logistics, 26(2), 119-141.






Abstract 1272  .
PDF downloaded 464  .