ANALYSIS OF RAW MATERIAL INVENTORY AT PT. ABC

• Main Author: BALYA MALKAN FIRJOUN, MUHAMMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/29160
• Institution: Institut Teknologi Bandung

PT. ABC is one of the companies engaged in the food industry, especially traditional food <br /> <br /> from Garut, West Java. The main product produce by PT. ABC is dodol. In its operation, the <br /> <br /> company has raw materials inventory. Inventory management of raw materials becomes one <br /> <br /> of the key indicators in measuring the company's performance in operation. The key indicator <br /> <br /> is that raw materials should not be out of stock and over stock. It is set so to prevent the <br /> <br /> production process disruption so that the process runs efficiently. <br /> <br /> PT. ABC experience inventory problems of raw materials in often. Glutinous rice experience <br /> <br /> out of stock and sugar experience over stock. The root cause of the problem consists of four <br /> <br /> things; (1) there is no inventory control method, (2) there is no forecast method, (3) the <br /> <br /> company does not know how long the inventory is sufficient before it runs out, and (4) the <br /> <br /> minimum number of purchases determined by suppliers. Therefore, this study aims to solve <br /> <br /> these problems by analyzing inventory control methods and appropriate usage forecasting <br /> <br /> techniques. <br /> <br /> Inventory control method of raw materials using Economic Order Quantity (EOQ) resulted in <br /> <br /> lower inventory cost than the existing method. Inventory cost of glutinous rice in 2017 is <br /> <br /> 76.640.000 IDR and if applying EOQ then the inventory cost is only 27.740.000 IDR. <br /> <br /> Inventory cost of sugar in 2017 is 93.370.000 IDR and if applying EOQ then the inventory <br /> <br /> cost is only 28.150.000 IDR. Based on this research, linear trend technique is the most <br /> <br /> appropriate usage forecasting technique for glutinous rice and sugar.