Controlling Raw Materials for Dry Grain Destiller with Solubles Using EOQ: A Case Study at PT. Haida Agriculture, Indonesia

Khafizh Rosyidi; Rizal Abiyyu Syihabudin

Khafizh Rosyidi Universitas Yudharta Pasuruan
Rizal Abiyyu Syihabudin Universitas Yudharta Pasuruan

Keywords: inventory control, raw materials, EOQ

Abstract

Raw material inventory management is one of the important aspects to support the smooth production process. The implementation of inventory management in the company is a primary need because if there is a problem in the supply of raw material, all the company’s operation activities will be distrupted. This study discusses one of the main raw materials in PT. Haida Agiculture Indonesia, namely Destillers Dried Grains With Solubles (DDGS). The purpose of this study is to determine whether the control of raw material inventory for Destillers Dried Grains With Solubles (DDGS) using the Economic Order Quantity (EOQ) methode is more optimal then the conventional methode applied by the company. The results obtained that the quantity of an economical purchase is 237.784 tons. The optimal frequency of purchasing raw materials is 17 times a year. Safety stock is 574.272 tonsn and the re order point is 602.206 tons. The total cost inventory which was originally Rp. 3.698.480 can be saved Rp. 3.439.159 so the savings that accur are Rp. 259.321.