Analytical Hierarchy Process (AHP), Economic Order Quantity (EOQ), and Reorder Point (ROP) in Inventory Management System

Authors

  • Adrian Dicky Lukiman Binus University
  • Richard Richard Binus University

DOI:

https://doi.org/10.21512/comtech.v11i1.5746

Keywords:

Analytical Hierarchy Process (AHP), Economic Order Quantity (EOQ), Reorder Point (ROP), inventory management system

Abstract

The research discussed the design of vendor selection features using the Analytical Hierarchy Process (AHP) method, inventory control using Economic Order Quantity (EOQ) method, and order notification using Reorder Point (ROP) method. The research aimed to find out the most appropriate time for procurement of goods, selection of vendors that fit the predetermined criteria and determine the number of items that had to be ordered within a period of time. Object-Oriented Analysis and Design (OOAD) method was used in building the system design. The sample of the research was a telecommunications service provider company. The result shows that by applying these three methods, the problems are overcome.

Dimensions

Plum Analytics

Author Biographies

Adrian Dicky Lukiman, Binus University

School of Information System

Richard Richard, Binus University

School of Information System

References

Al Qubaisi, A., Badri, M., Mohaidat, J., Al Dhaheri, H., Yang, G., Al Rashedi, A., & Greer, K. (2016). An analytic hierarchy process for school quality and inspection. International Journal of Educational Management, 30(3), 437-459.

Appadoo, S. S., Bector, C. R., & Bhatt, S. K. (2012). Fuzzy EOQ model using possibilistic approach. Journal of Advances in Management Research, 9(1), 139-164.

Bateman, T., & Snell, S. (2014). Management: Leading & collaborating in a competitive world. McGraw-Hill Education.

Chen, Y., & Liu, Z. (2009). Basic concepts and disciplinary position of management: A recognition based on scientometrics. Journal of Knowledge-based Innovation in China, 1(2), 100-116.

Disney, S. M., Maltz, A., Wang, X., & Warburton, R. D. (2016). Inventory management for stochastic lead times with order crossovers. European Journal of Operational Research, 248(2), 473-486.

Dweiri, F., Kumar, S., Khan, S. A., & Jain, V. (2016). Designing an integrated AHP based decision support system for supplier selection in automotive industry. Expert Systems with Applications, 62(November), 273-283.

Handoko, T. H. (2012). Manajemen edisi 2. Yogyakarta: BPFE.

Hasibuan, M. S. (2015). Manajemen Sumber Daya Manusia. Jakarta: PT. Bumi Aksara.

Jawad, H., Jaber, M. Y., & Bonney, M. (2015). The economic order quantity model revisited: An extended exergy accounting approach. Journal of Cleaner Production, 105(October), 64-73.

Kumar, R. (2016). Economic Order Quantity (EOQ) model. Global Journal of Finance and Economic Management, 5(1), 1-5.

Lancioni, R. A., & Howard, K. (1978). Inventory management techniques. International Journal of Physical Distribution & Materials Management, 8(8), 385-428.

Morrice, D. J., Cronin, P., Tanrisever, F., & Butler, J. C. (2016). Supporting hurricane inventory management decisions with consumer demand estimates. Journal of Operations Management, 45(July), 86-100.

Nagle, A., Fisher, S., Frazier, S., & McComb, S. (2018). Streamlining a simulation center’s inventory management. Clinical Simulation in Nursing, 18(May), 1-5.

Pane, E. S., & Sarno, R. (2015). Capability Maturity Model Integration (CMMI) for optimizing Object-Oriented Analysis and Design (OOAD). Procedia Computer Science, 72, 40-48.

Satzinger, J. W., Jackson, R. B., & Burd, S. D. (2011). Systems analysis and design in a changing world. Boston: Cengage learning.

Sevgen, A., & Sargut, F. Z. (2019). May reorder point help under disruptions? International Journal of Production Economics, 209(March), 61-69.

Setiawan, A. (2009). Implementasi aplikasi decision support system dengan metode Analytical Hierarcy Process (AHP) untuk penentuan jenis supplier. Jurnal Gaung Informatika, 2(2), 93-104.

Sivakumar, R., Kannan, D., & Murugesan, P. (2015). Green vendor evaluation and selection using AHP and Taguchi loss functions in production outsourcing in mining industry. Resources Policy, 46(December), 64-75.

Stevenson, W. J., & Chuong, S. C. (2014). Manajemen operasi perspektif Asia. Jakarta: Salemba Empat.

Downloads

Published

2020-06-30

Issue

Section

Articles
Abstract 1770  .
PDF downloaded 1267  .