Inventory Analysis At PT. Pionirbeton Industri

• Main Author: Raymond Darmawan - 29116021, Adam
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24952
• Institution: Institut Teknologi Bandung

Indonesia is a country that listed as one of the most populous country in the world based on World Statistics in 2015. Indonesia’s rapid growth population made construction growth, results in transformation of land use, from open area to establishment area.The functional change resulting in so many construction developments in Indonesia. As a country with rapid construction growth, undoubtedly the cities need construction service to support the process. Materials that are used are increased too, following more projects coming each year. Materials that are needed to construct new buildings, houses, infrastructures, are mostly concrete. Materials that are needed to support the composition of the concrete such as: cement, water, sand, split, etc. are needed to be monitored to fulfill customers’ high and fluctuating demands. PT. PionirbetonIndustri own a major business in the manufacturing of ready-mix concrete. <br /> <br /> <br /> One of the issues that the company faces is uncertain demands. Overstock materials are causing higher costs because it’s not match between sales and demand.Focused materials are differentiated into two kinds, there are: fine aggregate (sand) and coarse aggregate (split 1-2). Fine aggregates and coarse aggregates are filling materials to concrete compositions. The challenge that the company faces every day is determining how many materials to order at a time and when is the right time to order to fulfill the customers’ demands. These issues are complicated because of the uncertainties of the demands and when the supply will arrive. Material costs that are too high are affecting company’s income in the long run. <br /> <br /> <br /> The cause of overstock will be analyzed with The 5 whys analysis. One of the reasons for tough competitions in the industry is because of the threats of new entrants, this affects PT. PionirbetonIndustri’s sales, the sales are decreasing. The 5-whys analysis starts with why the amount of material purchases is not proportional to the amount of sales, it was because of the overstock materials in inventory. PT. PionirbetonIndustri is never ordering the material with some system or some calculation because the company do not know how to calculate the inventory management. From the sales factor, sales forecast is too high and the sales volume are too low because of the competitive price with the other competitors. <br /> <br /> <br /> From the analysis, it is known that material purchasing is not proportionate with sales. and caused overstock material in inventory and furthermore makes material cost extravagant.Inventory management is necessary to cut the excessive material costs. Average inventory level becomes standard to know whether current condition is needed to be fixed or not.Sand has 35.162 tons demand and the EOQ is at 219 tons. The safety stock is at 486 tons and the reorder point is at 584 tons. The existing average inventory level (AIL) is at 1.525 tons, the calculated AIL 596 tons and has difference 930 tons. Which means, company can save costs for sand up to 61% per month. Split has 49.035 tons demand and the EOQ is at 268 tons. The safety stock is at 718 tons and the reorder point is at 854 tons. The existing average inventory level (AIL) is at 1.464 tons, the calculated AIL 852 tons and has difference 612 tons. Which means, company can save costs for split up to 42% per month.PT. PionirbetonIndustri have to be more careful in managing inventory because it affects to more improvident operational costs. Inventory management becomes one of the ways to minimize operational costs. <br />