The Project of LOD (Lubricating Oil Division)

LOD is US oil company. It produces and stores about 400 types of automotive and
industrial lubricating oils and greases, for ultimate sale to over 1000 customers.

This company provides 4 roles, there are :

1. The Manager of LOD

2. Vice President of Finance
3. Analyst
4. Internal Auditor

ENVIRONMENT

COMPANY
SYSTEM

REFINERY

NARROW SYSTEM (LOD)

Customer order
Warehouse size distribution

Production Inventory Production Small

Lead Level Product Schedule
Big order
order
No. Aspek Identifikasi
1 customer order pattern Uncontrollable Input
2 Production Setup Cost Per Batch Uncontrollable Input
3 Unit Product Value Uncontrollable Input
4 Floor Space/unit Uncontrollable Input
5 Investment Holding cost Uncontrollable Input
6 Product Handling Cost Uncontrollable Input
7 Stock Replenishment Size Uncontrollable Input
8 Cuttoff for large orders Controllable Input
9 Large Order Pattern Controllable Input
10 Annual volume by special prod. Runs Component attribute
11 Annual number of special prod. Runs Component attribute
12 Annual Handling Cost for big cust. Component attribute
13 Annual setup cost for special prod. Runs Component attribute
14 Annual handling Cost for small cust. Component attribute
15 Annual volume met from stock Component attribute
16 Small order pattern met from stock Component attribute
17 Annual number stock repl'ment Component attribute
18 Annual set up cost for stock repl'ments Component attribute
19 Annual stock holding cost Component attribute
20 Average stock investmet Component attribute
21 Average stock level Component attribute
22 Value of annual demand Component attribute
23 Total annual relevant cost for product i Output
24 Total annual cost over all products Output
Total floor space for all products floor
25 Output
space needed for product i
26 Total floor spaces for all products Output
27 Industry Policy Irrelevant
28 Competitor Irrelevant
29 Environmental policy Irrelevant
30 Government policy Irrelevant