Supply arrangement of raw material and sugar stock to organize overstock risk in warehouse

Abstract

Raw materials and production outcome play important role in supporting warehouse capacity. The performance of company's production process will not be bothered if the company can control raw materials inventory and production capacity so that this is important to control logistics in warehouse. The activities in company's warehouse are very important because they will affect the response level to goods collecting. Risk management is required to respond actions that affect problem in raw materials capacity and production stocks in warehouse. This study aims to determine the amount of raw material inventory and warehouse stock capacity in PG XYZ and to determine the schedule of sugarcane raw materials so that the raw materials intensity and stocks can be equally distributed during the milling season. This study obtained total inventory cost from inventory management analysis of Rp. 663.945.589,8 resulted in an efficiency of Rp 36.054.410,02 and there are 2 risks that are categorized into high risk category, namely the previous milled sugar is still available and refined sugar is circulating exceed capacity.