Varying Lot Size Model With Equal And Unequal Sized Batch And Varying Numbers Of Batches For Multi-Stage Production In Palm Oil Mill
In palm oil industry, production cost for crude palm oil varies from time-to-time. Therefore, accurate decisions on production volume and timing are critical. This can be done by adopting inventory models into palm oil industry to identify the major cost influencing factors as well as the specific u...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
2013
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| Subjects: | |
| Online Access: | http://eprints.usm.my/43366/1/Elaine%20Lau%20Ying%20Man24.pdf |
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| Summary: | In palm oil industry, production cost for crude palm oil varies from time-to-time. Therefore, accurate decisions on production volume and timing are critical. This can be done by adopting inventory models into palm oil industry to identify the major cost influencing factors as well as the specific unit cost involve in production of crude palm oil. This will not only help the palm oil millers to make accurate decision but also to save the production cost to optimum. However, there is a large gap of knowledge present on the adoption of inventory models in palm oil industry. This research attempts to identify the inventory models that can fit into palm oil industry. The best fitted model is used to determine the best operating policy that can be implemented into palm oil mills. The major costs components in the models are unit inventory holding, setup, purchasing and transportation cost. The examination of compatibility of inventory theories with current industry was done so as to determine the practicality of inventory models in palm oil industry. In the preliminary stage of this research, relevant inventory models and characteristics of the palm oil industry were studied before data collection. Suitable inventory models were identified with reference to the criteria and practices of palm oil mills; namely, varying batch sizes, varying numbers of batches and multi stages production. The information was collected directly from the mill managers from the specific palm oil mill in Sabah. |
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