Track: Industrial Services

Abstract

One of the factors that plays an important role in competition is service to customers. One of the services that can be provided by the company is to provide timeliness in the delivery of goods. An important factor that supports the timeliness is the ordering of the right quantity of raw materials and the time to order the raw materials. Whereas if raw materials cannot be ordered in the right quantity and time, there will be a shortage or excess of raw materials, both of which will cause losses for the company. The research was conducted at a manufacturing company, which is order-based. The problem faced by the company is often experiencing inhibition of the production process and delays in sending orders to its customers. The aim of the research is providing propose regarding the method of ordering raw materials with the right quantity, considering the comparison of storage costs and the cost of ordering raw materials. The result was proposed decision of method to forecasting the need of raw materials, order quantity, and minimizing storage costs and raw material ordering costs.