Location, Transportation, and Inventory Planning for Citronella Oil Processing Unit at Rambatan Subdistrict

Devina Amadea, Felia (2023) Location, Transportation, and Inventory Planning for Citronella Oil Processing Unit at Rambatan Subdistrict. Diploma thesis, Universitas Andalas.

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Abstract

The problem examined in this study is regarding plans to build a citronella oil processing unit by the Sarasah Village Cooperative. The Sarasah Village Cooperative is a cooperative located in Nagari III Koto, Rambatan Subdistrict, Tanah Datar Regency, West Sumatera. The cooperative is building a citronella oil refinery factory at the end of 2022. Because the Sarasah Village Cooperative is just about to build a citronella oil processing unit, the leadership of the cooperative must have a plan for logistical activities to be carried out because logistics activity is one of the activities that causes increase company expenses. This study aims to determine the strategic site as the site to build the citronella oil processing unit plant in Rambatan Subdistrict, determine the most economical truckload to transport 500 kg citronella leaves, determine the maximum acquisition price of citronella leaves in the processing unit so that they still earn a minimum profit of 10%, and the order quantity of firewood and supporting materials and determine when to buy them. The method used in this research is the load score method and pairwise comparison to determine the strategic site of the factory development. Calculation of vehicle operating costs using the Ministry of Transportation in 2002 calculation method is used to determine the freight rates for citronella oil raw materials from suppliers in Rambatan Subdistrict to factories. Calculation of the number of orders for supporting materials as well as the time to order so that the company achieves production targets is calculated using the Economic Order Quantity (EOQ) method and reorder point (ROP) to calculate the quantity ordered for firewood and supporting materials as and when to order so that the company does not run out of supporting materials and firewood. So, the production process will not be disrupted due to a shortage of supporting materials or firewood. The first conclusion from this study is the strategic location for the construction of a citronella oil processing unit in the Rambatan Subdistrict is in Aur Serumpun. The second conclusion is that the most economical truckload to transport 500 kg citronella leaves is motor rickshaw. The third conclusion is that the acquisition price of citronella leaves per kg at the processing unit is a maximum of Rp1.040,00 if citronella oil is sold for Rp15.000,00 per 30 ml. The forth conclusion is that firewood is ordered as much as 4.500 kg per order with a reorder point of 500 kg, bottle is ordered 731 bottles per order with reorder point is 512 bottles, small cardboard box is ordered 114 boxes with reorder point is 77 boxes, large cardboard box is ordered 32 boxes with reorder point is 19,25 boxes, plastic seal for bottle cap is ordered 1.400 pieces per order with reorder point is 384 pieces, and label is ordered 951 pieces per order with reorder point is 512 pieces.

Item Type: Thesis (Diploma)
Primary Supervisor: Dr. Alexie Herryandie Bronto Adi
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Q Science > Q Science (General)
Divisions: Fakultas Teknik > Industri
Depositing User: S1 Teknik Industri
Date Deposited: 11 May 2023 08:09
Last Modified: 11 May 2023 08:09
URI: http://scholar.unand.ac.id/id/eprint/203852

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