ANALYSIS OF SUBSIDIZED FERTILIZER INVENTORY PLANNING AT PT. PUPUK KALTIM

• Main Author: Supriono
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/46793
• Institution: Institut Teknologi Bandung

The agricultural sector is one of the main sector that developed by the Government of Indonesia. The government strived to improve national food security by increasing domestic production. To support agricultural sector, the Government implemented a subsidized fertilizer program. Subsidized fertilizers are controlled goods, distribution process are tightly supervised based on regulation from Minister of Agriculture and Minister of Trade. The Producers of subsidized fertilizers program shall guarantee the availability of subsidized fertilizer when consumers, in this case farmers, need it. As one of the producers of subsidized fertilizer program, PT Pupuk Kaltim is responsible for nearly 2/3 area of Indonesia. The scarcity of subsidized fertilizers will caused turmoil in the community and become a sensitive issue. Throughout year 2018, there are always exist Districts/Cities that the availability of subsidized urea fertilizer are less than government regulations. Based on current business situation and current reality tree analysis, it was obtained due to in-adequate inventory planning tools that could anticipate all existing field conditions. Pupuk Kaltim needs reliable inventory planning tool that can be used to plan the distribution of subsidized fertilizers from the production centre to the Line-III Warehouses in an integrated manner. The tool shall be able to consider and anticipate all conditions that occur in the field. Distribution Requirement Planning (DRP) technique is most suitable for Pupuk Kaltim, based on the following reasons: the lead time needed for products to flow from a warehouse to other warehouse is long and varied, product originates at an internal production plant, fluctuation of demands over time caused by changes in government regulation and natural conditions, complex structure of distribution channels, with multi echelons and large number of branches, demand come from the lowest echelon and accumulated to the upper echelon. The advantage of DRP is capable to maintain multi-echelon inventory control of subsidized fertilizer effectively. DRP output makes it easy for replenishment planners to plan warehouse capacity, transportation costs, projected a number of labour and equipment throughout planning horizon.