Inventory Control Evaluation at The Spare Parts Warehouse of PT Semen Padang

Zulkarnain, Fakhrozi (2022) Inventory Control Evaluation at The Spare Parts Warehouse of PT Semen Padang. Diploma thesis, Universitas Andalas.

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Abstract

Inventory management is an essential issue for the ongoing production process in a company. Inventory exists to align supply from suppliers and customer demand. Production will be disrupted if there is a shortage of inventory (stock out), while production costs will rise if there is an excess of inventory (overstock). Inventory issues arise in various companies, including PT Semen Padang. Based on the current situation and field data, there is still an excess stock of some spare parts stored in the spare parts warehouse that far exceeds the amount of safety stock set. This leads to overstock issues, resulting in a large amount of capital being stored. On the other hand, some spare parts have final stock below zero and indicate stockout, resulting in user dissatisfaction. Based on the description above, it is necessary to conduct research to analyze and evaluate the company's previous inventory control and propose an appropriate inventory control method to minimize stockout and overstock problems to reduce spare parts' buildup and total inventory cost. This inventory problem will be resolved using the probabilistic method of inventory control in the form of a Q model with a backorder case. Based on the results of FNS classification, obtained spare parts belonging to the classification of F (fast-moving), as many as 40 spare parts, N (normal-moving), as many as 46 spare parts, and S (slow-moving), as many as 170 spare parts. According to the data processing results using the Q model, the amount of inventory held decreased from 2490 units in the actual condition to 1251 units in the proposed condition, and inventory shortages decreased from 670 units in the actual condition to 49 units in the proposed condition. It indicates that the potential overstock and stockout problem can be minimized. Furthermore, the total actual inventory cost is Rp3,925.454,524 and the total proposed inventory cost is Rp2,137,392,630, so inventory control using the model Q probabilistic provides savings of 45.55% or as much as Rp1,788,061,893.

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