Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots

<p>Planning Operation subdivision at PT Pertamina has to generate supply decisions includingmain depot to supply, supply point and transportation mode. However, the variability inplanning a supply schedule renders the process of determining a supply decision asineffective. The last assessment...

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Main Authors: Togar M Simatupang, Hendra W Pardhana
Format: Article
Language:English
Published: Institut Teknologi Bandung 2012-01-01
Series:Asian Journal of Technology Management
Online Access:http://journal.sbm.itb.ac.id/index.php/ajtm/article/view/173
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author Togar M Simatupang
Hendra W Pardhana
author_facet Togar M Simatupang
Hendra W Pardhana
author_sort Togar M Simatupang
collection DOAJ
description <p>Planning Operation subdivision at PT Pertamina has to generate supply decisions includingmain depot to supply, supply point and transportation mode. However, the variability inplanning a supply schedule renders the process of determining a supply decision asineffective. The last assessment on uncertainties was done at 2006 and has not beenconsidered during decision making process. On the other hand, the result of this researchindicates that the uncertainty level is too high to be ignored and the poor informationexchange between the regional offices and the head office decreases the Planning Operation’sability to create plans that covers the company condition. This paper proposes an appropriatesafety stock to withstand the uncertainties and a supply scheduling process that also considersuncertainties by using Monte-Carlo Simulation with random numbers to simulate the events inthe upcoming period.</p><p><em>Key words: inventory management, distribution planning, managing uncertainties, montecarlosimulation</em></p>
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spelling doaj.art-998e36883ade4402893b7de727cc0d442022-12-22T01:13:12ZengInstitut Teknologi BandungAsian Journal of Technology Management1978-69562089-791X2012-01-0131163Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main DepotsTogar M Simatupang0Hendra W Pardhana1School of Business and Management, Institut Teknologi Bandung, IndonesiaSchool of Business and Management, Institut Teknologi Bandung, Indonesia<p>Planning Operation subdivision at PT Pertamina has to generate supply decisions includingmain depot to supply, supply point and transportation mode. However, the variability inplanning a supply schedule renders the process of determining a supply decision asineffective. The last assessment on uncertainties was done at 2006 and has not beenconsidered during decision making process. On the other hand, the result of this researchindicates that the uncertainty level is too high to be ignored and the poor informationexchange between the regional offices and the head office decreases the Planning Operation’sability to create plans that covers the company condition. This paper proposes an appropriatesafety stock to withstand the uncertainties and a supply scheduling process that also considersuncertainties by using Monte-Carlo Simulation with random numbers to simulate the events inthe upcoming period.</p><p><em>Key words: inventory management, distribution planning, managing uncertainties, montecarlosimulation</em></p>http://journal.sbm.itb.ac.id/index.php/ajtm/article/view/173
spellingShingle Togar M Simatupang
Hendra W Pardhana
Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots
Asian Journal of Technology Management
title Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots
title_full Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots
title_fullStr Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots
title_full_unstemmed Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots
title_short Improving Inventory Management and Supply Chain of Diesel Fuel in Pertamina 5 Main Depots
title_sort improving inventory management and supply chain of diesel fuel in pertamina 5 main depots
url http://journal.sbm.itb.ac.id/index.php/ajtm/article/view/173
work_keys_str_mv AT togarmsimatupang improvinginventorymanagementandsupplychainofdieselfuelinpertamina5maindepots
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