Design of a Cycle Counting Model Based on ABC-XYZ Classification in the Operational Materials Warehouse of PT X

Yudha Koessala Puja Andhika; Iwan Vanany

doi:10.59141/jiss.v7i8.2494

Authors

Yudha Koessala Puja Andhika Institut Teknologi Sepuluh Nopember
Iwan Vanany Institut Teknologi Sepuluh Nopember

DOI:

https://doi.org/10.59141/jiss.v7i8.2494

Keywords:

Warehouse, Inventory Accuracy, ABC-XYZ, Cycle Counting, Inventory Management

Abstract

Inventory accuracy is essential for maintaining the reliability of power plant operations. PT X currently relies on annual physical stocktaking as its inventory control method; however, the average inventory accuracy during 2022–2024 was only 67.15%, below the company's target of at least 95%. This condition highlights the need for a more effective inventory control method capable of detecting discrepancies earlier and continuously. This study aims to develop an ABC-XYZ classification-based cycle counting model to improve inventory control in PT X's operational material warehouse. A quantitative approach was employed by analyzing Annual Consumption Value (ACV) and material demand patterns to determine inventory priorities and cycle counting frequencies. The results show that 253 items (10.4%) classified as Category A contributed 80% of the annual consumption value, while Category Z accounted for 66.3% of total items, indicating highly irregular demand patterns. Implementation of the proposed model during the first quarter of 2026 was completed largely according to schedule, with an overall completion rate of 83.0% and an average inventory discrepancy of 2%. The proposed model has the potential to help the company reach its inventory accuracy target, accelerate discrepancy detection without interrupting warehouse operations, and provide a more effective inventory control framework for PT X.

References

Al-Douri, A., El-Halwagi, M. M., & Groth, K. M. (2022). Emergency shutdowns of propylene production plants: Root cause analysis and availability modeling. Journal of Loss Prevention in the Process Industries, 80, 104921.

Ayalew, A. B., Alemu, A. G., & Worku, A. M. (2025). The application of ABC-VED with multi-criteria analysis for drug inventory management. Scientific Reports, 16(1), 2328.

Bagus, F., Hari, A., & Waluyo, M. (2025). Implementasi rancangan cycle counting menggunakan metode analisis ABC di gudang teknis rumah potong ayam XYZ. Jurnal Teknik Industri, 8(1).

Bornberg, R., & Khaerunnisa. (2025). The social and spatial layers of Borobudur Temple compounds, Java, Indonesia. In Sacred heritage and pilgrimages in cities (pp. 123–143). Springer.

Daya, A., & Leonard, J. (2025). Maintenance plan improvement using failure mode effect and criticality analysis: A case study on mining equipment. Engineering Science and Technology Journal, 6(3), 86–103.

Dehoratius, N., Holzapfel, A., Kuhn, H., Mersereau, A. J., & Sternbeck, M. (2023). Mengevaluasi prosedur prioritas penghitungan untuk meningkatkan akurasi inventaris di toko ritel. Manufacturing & Service Operations Management.

Frazelle, E. H. (2016). World-class warehousing and material handling (2nd ed.). McGraw-Hill Professional.

Gunarto, H. (2026). Magnificent Prambanan and Borobudur temples: UNESCO cultural heritage sites and symbol of Indonesian peace and religious harmony. Arigato Publishing.

Hillenbrand, R. (2024). The Islamic art of Southeast Asia. In Southeast Asian Islam (pp. 234–262). Routledge India.

Kaabi, H. (2022). Comparative analysis of multicriteria inventory classification models for ABC analysis. International Journal of Information Technology & Decision Making, 21(5), 1617–1646.

Khanorkar, Y., & Kane, P. V. (2023). Selective inventory classification using ABC classification, multi-criteria decision making techniques, and machine learning techniques. Materials Today: Proceedings, 72, 1270–1274.

Kubasakova, I., & Kubanova, J. (2024). Pemanfaatan irisan analisis ABC dan XYZ dalam perencanaan stok di gudang pada masa Covid. Acta Logistica, 11(3), 461–472. https://doi.org/10.22306/al.v11i3.532

Nurprihatin, F., Prasetyo, Y. T., Chandra, R., Widiwati, I. T. B., Lestari, T. E., & Islam, S. S. (2025). Strategic inventory control using economic order quantity and ABC classification to enhance operational excellence. In 2025 4th International Conference on Computational Modelling, Simulation and Optimization (ICCMSO) (pp. 40–46).

Paredes Rodríguez, A. M., Bravo Bastidas, J. J., Osorio Gómez, J. C., Peña Orozco, D. L., & González Feliu, J. (2023). Fuzzy AHP TOPSIS methodology for multicriteria ABC inventory classification. Journal of Engineering, 2023(1), 7661628.

Peng, H., Li, S., Shangguan, L., Fan, Y., & Zhang, H. (2023). Analysis of wind turbine equipment failure and intelligent operation and maintenance research. Sustainability, 15(10), 8333.

Rafael, I., Hedler, F., Somensi, K., & Taboada, C. (2023). The impacts of inventory record inaccuracy and cycle counting on distribution center performance. Production, 33, e20220077. https://doi.org/10.1590/0103-6513.20220077

Ratten, V. (2022). Cultural conditions and heritage tourism in Southeast Asia. In Driving entrepreneurship in Southeast Asia (pp. 31–43).

Rossetti, M. D., Collins, T., & Kurgund, R. (2001). Inventory cycle counting: A review. In Proceedings of the 2001 Industrial Engineering Research Conference (pp. 457–463).

Steinhoff, J. C. (2002). Best practices in achieving consistent, accurate physical counts of inventory and related property (p. 79).

Stojanović, M., & Regodić, D. (2017). The significance of the integrated multicriteria ABC-XYZ method for the inventory management process. International Journal, 14(5), 29–48.

Turker, A. K., et al. (2025). A systematic literature review on spare parts classification, inventory and warehouse management from a maintenance-repair perspective. https://doi.org/10.35378/gujs.1484883

Vital-Soto, A., & Olivares-Aguila, J. (2023). Manufacturing systems for unexpected events: An exploratory review for operational and disruption risks. IEEE Access, 11, 96297–96316.

Waters, D. (2008). Inventory control and management (2nd ed.). John Wiley & Sons.

West, J., Siddhpura, M., Evangelista, A., & Haddad, A. (2024). Improving equipment maintenance—Switching from corrective to preventative maintenance strategies. Buildings, 14(11), 3581.

Wijffels, L., Giannikas, V., Woodall, P., McFarlane, D., & Lu, W. (2016). Pendekatan penghitungan siklus yang disempurnakan dengan memanfaatkan data inventaris historis. IFAC-PapersOnLine, 49(12), 1347–1352. https://doi.org/10.1016/j.ifacol.2016.07.748