Abstract

PT. X is a company that manufactures telecommunication towers, electricity towers, street lighting, guardrail, and others. PT. X strives to have stock material in order to be able to run production and meet customer needs. In the process of procuring raw materials at PT. X there is a problem, the delay in sending raw materials to the factory. Therefore in this practical work I will discuss the lot sizing at PT. X in determining the most effective technique to be applied, so that the production process is not hampered and can reduce production costs, especially on the cost of procuring raw materials. Then the ordering of raw materials is ordered using the Lot For Lot method, Economic Order Quantity and Period Order Quantity. The first step is to collect demand data of 40x40x4x6000 equal-angel iron for the tower. Then proceed with the calculation method using Microsoft Excel. The final step taken next is to analyze the calculations using these 3 methods. The results of this study the Period Order Quantity method has the smallest total cost.

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