Inventory Control Analysis Of Sugarcane Raw Materials With Economic Production Quantity Method And Additional Raw Materials With Models of Continuous Review System And Periodic Review System
A B R Indah (a*), S Asmal (a), E A M Abidin (a)

a) Departement of Industrial Engineering, Faculty of Engineering, Hasanuddin University
Jalan Poros Malino Km. 6, Bontomarannu. Gowa, Sulawesi Selatan. 92171, Indonesia
*a.besseriyani[at]gmail.com

Abstract

PT Perkebunan Nusantara XIV Takalar Sugar Factory (PGT) is a sugar company located in Takalar City, South Sulawesi. The main raw material in the manufacture of sugar is sugar cane. Apart from the main raw materials, there are supporting raw materials in the form of quicklime, sulfur, phosphoric acid and flocculants. Takalar Sugar Factory has a less than optimal supply of raw materials for sugar cane and the addition of quite a lot of raw materials every month. This study aims to determine the best method of inventory of sugarcane raw materials and a probabilistic inventory model of supporting raw materials which are good for determining the minimum total cost of inventory.
This research was conducted using the Economic Production Quantity method for sugar cane raw materials and the Continuous Review System and Periodic Review System models for supporting raw materials. In the Economic Production Quantity method to complete the supply of raw materials that are mass produced and used alone as a sub-component of a product, the Continuous Review System model completes inventory control with a fixed order quantity but different order period intervals. Meanwhile, the Periodic Review System model accomplishes inventory control with different order quantities but fixed order period intervals.
Based on the results of research conducted by the Economic Production Quantity method, the total cost of supplies is Rp. 124.729.898.959/month for sugarcane raw materials. The Periodic Review System Model gives a total inventory cost of Rp. 101.328.065/year of additional raw materials. The total cost of inventory for all raw materials is Rp. 124.744.374.397.

Keywords: Inventory, Economic Production Quantity, Continuous Review System, Periodic Review System

Topic: Emerging Technologies in Agricultural Production Systems