Track: Undergraduate Research Competition

Abstract

PT XYZ is one of the cement producing companies in Indonesia. To produce cement, it is necessary to pay attention to the amount of raw material supply that must be provided. This is due to variable demand, the amount of inventory is not excessive, cost savings, and adjustment of the amount of inventory to the capacity of the warehouse. Currently PT XYZ has not been able to meet all consumer demands. This is because there is no method of controlling the inventory of raw materials that is not appropriate. This study aims to determine a good inventory model used in determining the order quantity, ordering time and safety stock taking into account the minimum total cost. Based on the analysis and calculation results, in this case, the use of the MRP method with the lot-sizing Least Unit Cost (LUC) technique will produce the lowest cost compared to the Economic Order Quantity (EOQ) method and wagner within algorithm. By using Least Unit Cost, the cost of ordering and storing raw materials will save Rp 1.096.019 with a percentage of 18% of the total costs incurred by the company.