skip to main content
10.1145/3468013.3468661acmotherconferencesArticle/Chapter ViewAbstractPublication PagesapcoriseConference Proceedingsconference-collections
research-article

A preliminary finding of warehouse stock discrepancy root-causes : a case of PT Astra International tbk Indonesia warehouse

Published:27 November 2022Publication History

ABSTRACT

PT. United Tractors tbk is PT. Astra International tbk group subsidiary in Indonesia. Construction machinery as one of major business unit of PT. United Tractors tbk offers sales various types of heavy equipment and transportation vehicles as well as their sparepart, attachment and the related services. In providing heavy equipment and transportation unit after- sales support and service level to it's customer, PT. United Tractors tbk has more than two hundred Distribution Center (DS) or Warehouses of unit sparepart in all Indonesia big island. Inventory accuracy in warehouse is one of the most important things to control in balance to achieve optimal service level set by customer. One common activity in controlling balance of inventory in warehouse is stock opname. Stock opname or stock taking is the event or activity that counting the amount of stock in the warehouse and as the instrument to make sure that there is no discrepancy between actual stock in the warehouse and actual stock on database. This is a real issue PT. United Tractors tasked with maintaining and controlling inventory is faced with. If not avoided or detected, warehouse stock discrepancy will bring about various damaging results such as loss of sales, customer dissatisfaction and build-up of stocks which lead to increase inventory cost. There have been many discrepancy cause identified in the scope of research related to inventory accuracy in warehouse but most of the research is only carried out certain aspect of warehouse such as operation, man power management, facilities, etc. It is, therefore, the intention of this research is to address aspect causing warehouse stock discrepancy problem in many aspects of warehouse management by identifying root cause based on literature and validation of warehouse practitioner expertise. The result revealed that there are 6 aspects that affected to warehouse stock discrepancy : (1) operational excellence, (2) man power management, (3) warehouse management system (4) machine and facility reliability, (5) policy and top management, (6) environment and external factors.

References

  1. Richard, G. (2014), “Warehouse management : A complete guide to improving efficiency and minimizing costs in the modern warehouse”, Second edition.Google ScholarGoogle Scholar
  2. Basri, M., H. (2018). “Operations Strategy for Decreasing Stock Takinng Discrepancy in PT.Akashi Wahana Indonesia” The 3rd International Conference on Management in Emerging Markets (ICMEM 2018)Google ScholarGoogle Scholar
  3. Yun Kang & Stanley B. Gershwin (2005) “Information inaccuracy in inventory systems: stock loss and stockout”, IIE Transactions, 37:9, 843-859, DOI: 10.1080/07408170590969861Google ScholarGoogle ScholarCross RefCross Ref
  4. R. F. RinehartSource : “Operations Research”, Vol. 8, No. 4 (Jul. - Aug., 1960), pp. 543-564Google ScholarGoogle Scholar
  5. Tzionas, P. and Maria,D. “Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets.” Journal of Modelling in Management Vol. 14 No. 2, 2019 pp. 360-384.Google ScholarGoogle Scholar
  6. Sari, K. (2008), “Inventory inaccuracy and performance of collaborative supply chain practices”, Industrial Management & Data Systems Vol. 108 No. 4, 2008 pp. 495-509.Google ScholarGoogle ScholarCross RefCross Ref
  7. DeHoratius, N and Raman, A. (2004), “Inventory record inaccuracy: an empirical analysis”, Management Science , Apr., 2008, Vol. 54, No. 4 (Apr., 2008), pp. 627-641Google ScholarGoogle Scholar
  8. Zadeh, H, A, and Sharda, R. (2015), “Inventory record inaccuracy due to theft in production-inventory systems”, Int J Adv Manuf Technol (2016) 83:623–631.Google ScholarGoogle Scholar
  9. Tellkamp, C and Fleisch (2004), “Inventory Inaccuracy and Supply Chain Performance: A Simulation Study of a Retail Supply Chain” Article in International Journal of Production Economics · March 2005Google ScholarGoogle Scholar
  10. Sari, K. (2015), “Investigating the value of reducing errors in inventory information from a supply chain perspective” Kybernetes Vol. 44 No. 2, 2015 pp. 176-185Google ScholarGoogle ScholarCross RefCross Ref
  11. Selma Khader, Yacine Rekik, Valérie Botta-Genoulaz & Jean-Pierre Campagne (2014) Inventory management subject to multiplicative inaccuracies, International Journal of Production Research, 52:17, 5055-5069Google ScholarGoogle ScholarCross RefCross Ref
  12. Yacine Rekik & Evren Sahin (2012) Exploring inventory systems sensitive to shrinkage – analysis of a periodic review inventory under a service level constraint, International Journal of Production Research, 50:13, 3529-3546.Google ScholarGoogle ScholarCross RefCross Ref
  13. Yacine Rekik, Aris Syntetos, Zied Jemai, An e-Retailing Supply Chain Subject to Inventory Inaccuracies, Int. J. Production EconomicsGoogle ScholarGoogle Scholar
  14. Feng Tao, Tijun Fan, Yao-Yu Wang & Kin Keung Lai (2019): Joint pricing and inventory strategies in a supply chain subject to inventory inaccuracy, International Journal of Production ResearchGoogle ScholarGoogle Scholar
  15. R. F. RinehartSource: Operations Research, Vol. 8, No. 4 (Jul. - Aug., 1960), pp. 543-564Google ScholarGoogle Scholar
  16. Ballard, R.,L.(1996) “Methods of inventory monitoring and measurement “Logistics Information Management Volume 9 · Number 3 · 1996 · pp. 11–18Google ScholarGoogle Scholar
  17. Cidal, G., Y., Cimbek, Y., Karahan, K., Böler., Özkardeşler, O. and Üvet, H. (2020). “A Study on the Development of Semi Automated Warehouse Stock Counting System” 978-1-7281-3910-4/19/$31.00 ©2019 IEEEGoogle ScholarGoogle Scholar
  18. Abushaikha, I., Salhieh, L., and Towers, N. (2018). “Improving distribution and business performance through lean warehousing” International Journal of Retail Distribution Management Vol. 46 No. 8, 2018 pp. 780-800Google ScholarGoogle ScholarCross RefCross Ref
  19. Kim,T, Y., Dekker, R and Heij, C. (2017). “Improving warehouse labour efficiency by intentional forecast bias” International Journal of Physical Distribution & Logistics Management Vol. 48 No. 1, 2018 pp. 93-110Google ScholarGoogle ScholarCross RefCross Ref
  20. Sharma, S, and Shah, Bhavin. (2015). “Towards lean warehouse : transformation and assessment using RTD and ANP” International Journal of Productivity and Performance Management Vol. 65 No. 4, 2016 pp. 571-599Google ScholarGoogle ScholarCross RefCross Ref
  21. Bruccoleri, M., Cannella, S, and Porta, L., G. (2014). “Inventory record inaccuracy in supply chains: the role of workers’ behavior” International Journal of Physical Distribution & Logistics Management Vol. 44 No. 10, 2014 pp. 796-819Google ScholarGoogle ScholarCross RefCross Ref
  22. Karaesmen, F., Uckun, C, and Savas, S. (2008). “Investment in improved inventory accuracy in a decentralized supply chain” International Journal of production economics Int. J. Production Economics 113 (2018) 546-566Google ScholarGoogle Scholar
  23. Wang, R., Lee, C., J, and Hsu, S., C. (2020). “Preventing or encouraging illegal activities by construction firm : effect of top management team compensation and aspiration-performance discrepancies” Engineering, Construction and Architectural Management © Emerald Publishing Limited 0969-9988 DOI 10.1108/ECAM-08-2019-0440Google ScholarGoogle Scholar
  24. Fornander, D, and Lindberg, P. (2013). “Inventory reduction: an analysis on finished goods inventory focused on “Released to Warehouse” leadtime” Master of Science Thesis in the Master degree program Supply Chain Management, Chalmers University of TechnologyGoogle ScholarGoogle Scholar

Recommendations

Comments

Login options

Check if you have access through your login credentials or your institution to get full access on this article.

Sign in
  • Published in

    cover image ACM Other conferences
    APCORISE '21: Proceedings of the 4th Asia Pacific Conference on Research in Industrial and Systems Engineering
    May 2021
    672 pages
    ISBN:9781450390385
    DOI:10.1145/3468013

    Copyright © 2021 ACM

    Permission to make digital or hard copies of all or part of this work for personal or classroom use is granted without fee provided that copies are not made or distributed for profit or commercial advantage and that copies bear this notice and the full citation on the first page. Copyrights for components of this work owned by others than ACM must be honored. Abstracting with credit is permitted. To copy otherwise, or republish, to post on servers or to redistribute to lists, requires prior specific permission and/or a fee. Request permissions from [email protected]

    Publisher

    Association for Computing Machinery

    New York, NY, United States

    Publication History

    • Published: 27 November 2022

    Permissions

    Request permissions about this article.

    Request Permissions

    Check for updates

    Qualifiers

    • research-article
    • Research
    • Refereed limited

    Acceptance Rates

    Overall Acceptance Rate68of110submissions,62%
  • Article Metrics

    • Downloads (Last 12 months)25
    • Downloads (Last 6 weeks)4

    Other Metrics

PDF Format

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

HTML Format

View this article in HTML Format .

View HTML Format