Optimization Of Work-In-Process Inventory Through Filling Activity In Chevron Pacific Indonesia Company
Abstract
Chevron Pacific Indonesia Company (CPI) is one example of industry that implies
Vendor Managed Inventory (VMI) technique where the production systems controlling
the inventory . In this company, Filling and Loading appears as an operational activity
toward Work-in-Process inventory system. Filling deposit the crude oil which came from
the oil production field into the storage tank, until it is being shipped through the loading.
The loading will follow the 5 days shipping schedule that already being determined
before by in charged parties. This research presents an algorithm model under VMI
concept to find the best filling strategy to avoid shipment delay. The current condition in
the company shows that delay and inconsistency of shipping schedule occurs in some
conditions, due to insufficient amount in their storage tank. By using the algorithm model
proposed by this r esearch, it will provide the best filling strategy which defines when,
where and how much to locate the crude properly so no more shipment delays .
KEYWORDS: Vendor Managed Inventory, Filling and loading activity, A lgorithm
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- Industrial Engineering [2224]