INVENTORY MANAGEMENT IMPROVEMENT AT PT INALUM, KUALA TANJUNG, SUMATRA UTARA
As domestic aluminium demand increases every year and domestic aluminium production capability is still low, the need for expansion of aluminium production is very urgent in the future. The domestic aluminium production capability is only able to meet about 20% of the total domestic demand. Therefo...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/80722 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | As domestic aluminium demand increases every year and domestic aluminium production capability is still low, the need for expansion of aluminium production is very urgent in the future. The domestic aluminium production capability is only able to meet about 20% of the total domestic demand. Therefore, the management of PT Inalum has made an expansion plan in the next 5 years to achieve the production target of 900k Tons of aluminium. The increase in production that will occur in the next few years will also increase the consumption of raw materials and spare parts to support the smooth production of aluminium. Management must ensure the availability of raw materials and spare parts to avoid out of stock. On the other hand, purchasing raw materials and spare parts in too large quantities that results in overstock should be avoided to minimize inventory stock.
This research was aimed to analyze the inventory issue in PT Inalum. The method used in this research is quantitative method to collect inventory historical data from January 2022 to December 2022 obtained from the company's ERP SAP. The data contains information of 6028 items of the MRO inventory. The collected data was analyzed using Economic Order Quantity (EOQ), Reorder Point (ROP), Safety Stock (SS) and Average Inventory Level (AIL). By using Fixed Order Quantity model, the MRO inventory is calculated to compare the ideal and actual average inventory levels.
From the analysis, the researcher found that the MRO inventory in Kuala Tanjung, PT Inalum has a service level of 0.52 which is still far below the service level target of 0.95. At the same time, PT Inalum has the potential to reduce inventory by USD 5,402,389 or 58.2% of the inventory value. This research aims to provide guidance for the management of PT Inalum in making inventory policies that can increase service levels and at the same time can minimize inventory cost.
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