Abstract
Fertilizer has an important role in supporting the productivity of food crops. The Indonesian government provides subsidized fertilizers in an effort to support the fulfillment of national food needs. The number of subsidized fertilizer needs targeted by the government increases every year. Therefore, appropriate inventory planning is needed to realize the subsidized fertilizer production target that has been set by the government. The type of NPK fertilizer is one of the concerns because this type of subsidized fertilizer has a high demand rate, but its production figure is still far from the realization target. So that in this study the author aims to conduct a comparative analysis of inventory with the policies set by the company, namely Minimum-maximum with the Economic Order Quantity (EOQ) method. The EOQ method considers several costs, such as holding costs, raw material prices, and ordering costs. There are several outputs produced by the authors in this study, such as the frequency of orders, safety stock, reorder points, and total inventory costs. With this policy, the total cost of raw material inventory that must be spent for the manufacture of NPK fertilizer is Rp 4,257,606,170. And by using the EOQ method, it can save the company's total inventory cost of Rp. 121,368,688 or 2.77%.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: Jurnal SENOPATI : Sustainability, Ergonomics, Optimization, and Application of Industrial Engineering
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.