Inventory control of raw material on sweet bread production

Abstract

The purpose of this study was to analyze and evaluate the management of raw material procurement on sweet bread production in Company X. Raw materials are the main factors that support the smooth and effective of the production process. The availability of raw materials must be in accordance with the quality, quantity, timeliness and minimum costs. Therefore, companies need to maintain the level of raw material inventory to avoid the problem of procurement of raw materials, which can affect the company’s profit. To plan raw material requirements, the method used is Material Requirement Planning (MRP) with the Economic Order Quantity (EOQ) technique. From the results of raw material requirements calculation, it can be seen that ordering all raw materials is done once a month. Raw materials are ordered in period 0 (the period before the production process), with the number of orders for wheat flour of 28,900 kg, yeast of 1,000 kg, salt of 2,625 kg, sugar of 8,050 kg, powdered milk of 2,125 kg, glutenfat of 2,256 kg, butter of 2,520 kg, bread improver of 220 kg, calcium propionate of 250 kg, water of 3,300 L, ice cubes of 11,830 kg and packaging materials of 455,000 packs. The cost of raw materials inventory in one month reaches IDR 61,707,525.48 or 13.06% of the total sales of sweet bread per month.