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Inventory control analysis of sugarcane raw materials with economic production quantity method and additional raw materials with models of continuous review system and periodic review
Indah A.B.R.
Aip Conference Proceedings
Abstract
In the manufacture of granulated sugar, the main raw material used is sugar cane. Additional raw materials are also needed in the manufacturing process, while additional raw materials are thohor, sulfur, phosphoric acid, and flocculants. In the production carried out, several obstacles are experienced, especially in providing raw materials, namely raw sugar cane, every month. This research aims to determine the best raw material supply method and a probabilistic additional raw material inventory model to determine the minimum total inventory cost. In this study, the Economic Production Quantity (EPQ) method was used for the supply of raw materials for sugar cane and the Continuous Review System (CRS) and Periodic Review System (PRS) models for the supply of additional raw materials for sugar production. The EPQ method is used for mass-produced types of raw materials and used alone for product sub-components. The CSR model is used to complete inventory control with a fixed number of orders but different order periods. While the PRS model is used for inventory control with the number of orders whose value varies, the interval of the ordering period is fixed. Results Based on the research obtained for The EPQ method, the total inventory cost is Rp. 124,729,898,959/month for sugarcane raw materials. The CSR Model obtained a total inventory cost of Rp. 101,328,065/year for additional raw materials.