Analysis of Raw Material Inventory in Poultry Feed Companies in Makassar City, Indonesia

Abstract

This study analyzed the procurement of raw materials in a company PT.X at Makassar city, Indonesia in production activities. Production raw materials are imported from various places such as the provision of soybean meal, MBM, CGM, and DDGS. The purpose of this study is to determine the procurement management of soybean meal, MBM, CGM, DDGS raw materials in the manufacture of feed in the company. Raw material inventory management in each company is different, both in terms of the number of units of raw material inventory in the company, the time of use, and the amount of cost of purchasing these raw materials. The use of the EOQ method in calculating raw material inventory can help control costs incurred. The optimal amount of soybean meal raw material ordering is 4.426.773 kg with an order frequency of 10 times and a safety stock of 3.033.033 kg and a reoder point in 45 days. MBM ordering is 1.131.681 kg with an order frequency of 3 times and a safety stock of 258.333 kg and a reorder point in 91 days. Furthermore, the ordering CGM is 519.709 kg with an order frequency of 6 times and a safety stock of 233.333 kg and a reoder point in 52 days. The last raw material is DDGS as much as 1.569.749 kg with an order frequency of 9 times and a safety stock of 1.210.000 kg and a reorder point in 73 days. If this is done, the company will certainly benefit from cost efficiency. The results obtained were able to reduce company expenses by IDR 75,915,750,000 in one period. Keywords: Feed company, inventory management, feed raw materials, economic order quantity, reorder point

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