Product-Service System Inventory Control for Malaysian Palm Oil Industry: A Case Study Utilizing IDEF0 Modelling

  • Fatkhurrahman MananiEmail author
  • Siti Zubaidah Ismail
Conference paper
Part of the Lecture Notes in Mechanical Engineering book series (LNME)


Over the last several years, the palm oil industry has multiplied in Malaysia as it is among the main contributors to the country’s economic development. The government strongly emphasizes palm oil productivity in Malaysia in terms of quality and safety. The current inventory context offers a more extensive set of uncertainties that the company needs to manage due to the enhanced scope and complexity of the product and service offering. The current method of determining inventory takes an annual physical inventory by comparing the actual inventory with record levels. This method is a costly and time-consuming effort. This paper investigates Product-Service System (PSS) Inventory Control for different types of the section in the palm oil industry. In this work, an integrated and systematic methodology is presented for the assessment of inventory control. The methodology is represented as an IDEF0 activity model that rigorously defines the interconnections of information and activities with incorporating product and service elements. In general, therefore, it seems that PSS inventory control can integrate some of the elements involved in inventory control and consequently give a positive impact on all palm oil industry players.


Product-Service System (PSS) Inventory control Palm oil IDEF0 



This research would not have been possible without the financial support given by the Universiti Malaysia Pahang via RDU180293. Neither would it have been possible without the support, time and knowledge provided by the collaborating industrial company. The views expressed in this paper are those of the authors.


  1. 1.
    Vijaya, S., et al.: Life cycle inventory of the production of crude palm oil - a gate to gate case study of 12 palm oil mills. J. Oil Palm Res. 20, 484–494 (2008)Google Scholar
  2. 2.
    Baines, T.S., et al.: State-of-the-art in product-service systems. Proc. Inst. Mech. Eng. Part B: J. Eng. Manuf. 221(10), 1543–1552 (2007)CrossRefGoogle Scholar
  3. 3.
    Sani, M.H.: Applicable inventory control models for agricultural business managers: Issues and concerns. Trends Agric. Econ. 7(1), 11–25 (2014)CrossRefGoogle Scholar
  4. 4.
    Borodin, V., et al.: Handling uncertainty in agricultural supply chain management: a state of the art. Eur. J. Oper. Res. 254, 348–359 (2016)CrossRefGoogle Scholar
  5. 5.
    Shi, J.J., et al.: Managing inventories for agricultural products: the optimal selling policies. Oper. Res. Manuscr. 3, 142 (2014)Google Scholar
  6. 6.
    Umar, M.S., et al.: A policy framework and industry roadmap model for sustainable oil palm biomass electricity generation in Malaysia. Renew. Energy 128, 275–284 (2018)CrossRefGoogle Scholar
  7. 7.
    Alam, A.F., et al.: Malaysian oil palm industry: prospect and problem. J. Food Agric. Environ. 13(2), 143–148 (2015)Google Scholar
  8. 8.
    Nordin, A.B.A: A study on inventory management of malaysia palm oil products. Oil Palm Ind. Econ. J. 12(1) (2012)Google Scholar
  9. 9.
    Meier, H., et al.: Industrial product-service systems—IPS2. CIRP Ann.-Manuf. Technol. 59, 607–627 (2010)CrossRefGoogle Scholar
  10. 10.
    Muto, K., et al.: A guideline for product-service-systems design process. Proc. CIRP 30, 60–65 (2015)CrossRefGoogle Scholar
  11. 11.
    Papazoglou, M.P., et al.: Collaborative on-demand product-service systems customization lifecycle. CIRP J. Manuf. Sci. Technol. 480, 15 (2018)Google Scholar
  12. 12.
    Ziout, A., Azab, A.: Industrial product-service system: a case study from the agriculture sector. Proc. CIRP 33, 64–69 (2015)CrossRefGoogle Scholar
  13. 13.
    Waissi, G.R., et al.: Automation of strategy using IDEF0 - a proof of concept. Oper. Res. Perspect. 2, 106–113 (2015)MathSciNetCrossRefGoogle Scholar
  14. 14.
    Sarkis, J., Liles, D.H.: Using IDEF and QFD to develop an organizational decision support methodology for the strategic justification of computer-integrated technologies. Int. J. Proj. Manag. 13(3), 177–185 (1995)CrossRefGoogle Scholar
  15. 15.
    Bevilacqua, M., et al.: A combined IDEF0 and FMEA approach to healthcare management reengineering. Int. J. Procure. Manag. 8, 25–43 (2015)CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. 2020

Authors and Affiliations

  1. 1.Faculty of Mechanical and Manufacturing EngineeringUniversity Malaysia PahangPekanMalaysia

Personalised recommendations