INVENTORY CONTROL OF CHEMICAL USING JIT (JUST IN TIME) STRATEGY (CASE STUDY: PT 3P REFINERY UNIT DUMAI)

• Main Author: Nugroho, Ariadi
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/64185
• Institution: Institut Teknologi Bandung

PT 3P as state oil and gas mining company which is in charge of managing businesses in the energy sector. By one of subsidiaries, PT 3P Refinery Unit Dumai have produced various products of fuel oil and non-fuel oil from and have been distributed to various parts of the country and abroad. The operation process of the PT 3P Refinery Unit Dumai requires chemicals in the operation process. There are 3 types of active chemical stock with fast moving category: Sodium Hydroxide (NaOH), Hydrochloric Acid (HCl), and Calcium Hypochlorite (Ca(ClO) 2 ). PT 3P Refinery Unit Dumai through Procurement Department which is responsible for availability of the chemicals faces issues in related to: (1) current inventory control strategy (EOQ) is not being followed consistently, (2) low delivery flexibility, and (3) unplanned inventory replenish action. This has an impact on the condition of cost reduction and service level. The alternative solution for inventory replenishment strategies used in this study are proper Economic Order Quantity (EOQ), Just In Time (JIT), and Vendor – Managed Inventory (VMI). Based on total cost calculation, JIT strategy is the best alternative. JIT method has a lower cost than using proper EOQ and VMI method. If the PT 3P Refinery Unit Dumai can implement JIT method, the potential cost saving of JIT strategy obtained company is Rp 9.814.660.114,- or approximately 31,98 % of the total cost of existing inventory control strategy. The result is conceptual of improvements have been developed related to JIT model about process, replenishment policy, warehousing, supplier relationship and information system. Based on identification, there are also potential risks that coming along with using new strategy. By generating risks rating and action plan, PT PT 3P Refinery Unit Dumai have been ready to mitigate the risks.