An Integrated Framework for MRO Risk Mitigation Beyond Single Dimension Classification in The Upstream Oil and Gas Sector
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Upstream oil and gas companies face simultaneous MRO inventory stockouts and overstock, reflecting misallocation rather than resource scarcity. Existing classification methods – ABC (value), VED (criticality), and ADI-CV (demand pattern) – each address only one dimension, leaving residual risk that an integrated framework can eliminate. This study applies a combined ABC-VED-ADI-CV approach to 90 MRO items at an Indonesian upstream company using 12 months of transactional data and structured expert interviews. ABC identified Class A (6% of items with 80% of cost); VED classified 54% as Vital; ADI-CV found 96% exhibiting lumpy demand, confirming that conventional forecasting is inappropriate for virtually the entire portfolio. Integrating all three dimensions identified three tubing items as highly critical – Class A, Vital, and Lumpy – whose stockout triggers immediate well shutdown. The framework offers practitioners a replicable prioritisation tool for procurement, safety stock, and supplier management.
Andian Ari Istiningrum, Politeknik Energi dan Mineral Akamigas
holds a Master of Commerce in Accounting from The University of Queensland, Australia, in 2010. She also received her bachelor's degree in Accounting from Universitas Gadjah Mada, Indonesia, in 2000. She is currently an associate professor at Politeknik Energi dan Mineral Akamigas in Cepu, Indonesia. Her research includes management and financial accounting. She can be contacted at email: andian.istiningrum@esdm.go.id or andian.istiningrum@gmail.com.
The Author Contribution is: Conceptualization, Methodology, Validation, Formal Analysis, Writing-Original Draft, Writing – Review & Editing.
Dhanang Resnamurti, PT Pertamina EP Cepu
received the MBA degree in business administration and operations management from the School of Business and Management, Institut Teknologi Bandung (ITB), Indonesia. He is currently studying for his doctoral degree in management science at Universitas Pembangunan Nasional Veteran Jawa Timur, Indonesia. He is also a Supply Chain Manager at PT Pertamina EP Cepu, Indonesia. His research interest is in management leadership.
The Author Contribution is: Data Resources, Data Curation
Chhya Pang, Cambodia Logistics Association
holds a master's degree in social and solidarity economy as well as a master's degree in entrepreneurship and project management from the University of Lumiere Lyon, France, and the Royal University of Law and Economics, Phnom Penh, Cambodia. He also received his bachelor's in general management in 2006. He is currently working as a trainer and speaker at various national and international seminars and training programs. He is a member of the Cambodia Logistics Association.
The Author Contribution is: Supervision
Nur Ardiansah, Politeknik Energi dan Mineral Akamigas
holds a master's degree in logistics and supply chain, industrial engineering in 2024 from Institut Teknologi Sepuluh November, Indonesia. He also received his bachelor's degree in Oil and Gas Logistics from Politeknik Energi dan Mineral Akamigas, Indonesia, in 2018. He is currently working as an Educator Laboratory Analyst, and his research interests include logistics in oil and gas.
The Author Contribution is: Project Administration
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Copyright (c) 2026 Andian Ari Istiningrum, Dhanang Resnamurti, Chhya Pang, Nur Ardiansah
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