Year-end Sale % OFF 
Abstract
Inventory is one of the current assets that can be classified as company assets. But in reality, inventory often turns into an operational problem that can affect the company's overall performance. This problem occurs due to the incorrect determination of the amount of inventory. Both excess and shortage of inventory can lead to cost overruns. This study applies the Wagner Whitin Algorithm and the Silver-Meal method in the lot-sizing process and the ABC (Always Better Control) method in determining the classification of raw materials at PT. X. Using the ABC method, it is known that the ADC-12 Ingot item has a very significant effect to inventory. Inventory optimization using the Wagner Whitin Algorithm and the Silver-Meal method resulted in the optimal frequency of ordering ADC-12 Ingots is 9 times and the total inventory cost is 994,098,000 IDR as well as inventory cost savings of around 18,403,180 IDR or 1.8% of the cost of existing inventory.
Highlights
Inventory is one of the current assets that can be classified as company assets
Based on observations in the company, it is known that in placing orders PT XYZ only consider the numbers of raw materials that can meet the needs for a certain period without considering the inventory costs incurred
The Wagner Whitin algorithm is the optimum solution to the dynamic deterministic order size problem, where the requirements for each period must be met
Summary
Inventory is one of the current assets that can be classified as company assets. But in reality, inventory often turns into an operational problem that can affect the company's overall performance. The company feels the need to optimize raw material control. Based on observations in the company, it is known that in placing orders PT XYZ only consider the numbers of raw materials that can meet the needs for a certain period without considering the inventory costs incurred. This can lead to a buildup of raw materials and an increase in inventory costs. This study applies the Wagner Whitin Algorithm and the Silver-Meal method in the lot-sizing process and the ABC (Always Better Control) method in determining the classification of PT XYZ raw materials.
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