An optimization in management of inventory system for pipeline : a case study

Abstract

This study was designed to investigate the issues contributing to the inventory shortages that keep on arise faced by local oil service company located in Terengganu. These problems resulted in various setbacks that influenced the overall performance of the piping service. These setbacks are categorized to three; risk, fiscal and reputation. In this study, statistical analysis was performed on the historical inventory records dated from 1'st January of 2004 till 1'st January 2008 obtained from the company. The output retrieved is the period of each project and the lead time distribution over the extent of 12 months, which is presented in the form of "descriptive statistics". In addition to that, interview sessions were conducted with the managerial and personnel involved in the project to determine the factors contributing to the inventory issue. As a result of this study, forecast of future project plan is forwarded on ARIMA, a Time Series forecasting technique, in order for improving the efficiency in inventory management.