Inventory Planning of Raw Materials for Bread and Pastry in CV Hoya Mitra Sejati

Sonia, Shaquella Tri Putri (2021) Inventory Planning of Raw Materials for Bread and Pastry in CV Hoya Mitra Sejati. Diploma thesis, Universitas Andalas.

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Abstract

In order to ensure the production meets the demand, the company must have a smooth production. Raw materials inventory is one of the aspects to support production. If the raw materials needed for the production are on stock out, then the production will be delayed. Otherwise, excessive inventory of raw materials will be wasted of storage area and holding cost. Therefore, raw materials inventory is one of the most important factors for a company. Consequently, the company ought to have an optimal inventory. Inventory exists in order to synchronize supply from the supplier and the demand of the customer. CV Hoya Mitra Sejati is one of the food industries specialized in bread and pastry, has different product demands from the customers that are fluctuative. In order to anticipate the uncertain demand, CV Hoya Mitra Sejati needs to provide inventory. Unfortunately, CV Hoya Mitra Sejati faced excess raw materials because there is no method for planning and controlling the inventory. Inventory planning is necessary for CV Hoya Mitra Sejati in order to meet customer demand and minimize the total inventory cost. The material classification is needed in order to plan the inventory. In this research the material classification is using the ABC – FSN method and resulted in six classes of materials consist of 23 raw materials of AF class, ten raw materials of AS class, 13 raw materials of BF class, 16 raw materials of BS class, ten raw materials of CF class, and 33 raw materials of CS class. The method used for the inventory planning in CV Hoya Mitra Sejati inventory is the Continuous Review Method. The s,S model is applied to the first class raw materials (AF, AS, BF, and CF) and s,Q model is used to the second class materials (BS and CS). The proposed inventory planning can reduce the total inventory cost by Rp226,584,474.81 or 7.799%. It shows that Continuous Review Method is more optimal than the actual method of CV Hoya Mitra Sejati for planning the inventory for raw materials for bread and pastry. The total cost of inventory for 2020 using Continuous Review Method is Rp3,245,980,150.67. Sensitivity analysis is performed to the three variables consisting of demand or material requirement, holding cost, and ordering cost. The results show that all three variables are sensitive to the total inventory cost. Thus, the demand or material requirement, holding cost, and ordering cost variables must be considered carefully.

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