INVENTORY PLANNING FOR RAW MATERIAL OF SIR-20 CRUMB RUBBER (Case Study: PT P&P LEMBAH KARET)

Afiska, Yoshinta Dewi (2020) INVENTORY PLANNING FOR RAW MATERIAL OF SIR-20 CRUMB RUBBER (Case Study: PT P&P LEMBAH KARET). Diploma thesis, Universitas Andalas.

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Abstract

PT P&P Lembah Karet is one company that processes raw rubber into semi-finished rubber, which is then exported to several tire manufacturing companies such as Cooper, Continental, Goodyear, and others. PT. P&P Lembah Karet implements a Make to Stock (MTS) production system, where the company will produce rubber as an inventory before orders from the costumers are received. There is a mismatch between demand and the realization of production in PT. P&P Lembah Karet. This is caused by the demand that tends to fluctuate and the lack of availability of raw materials. At present, there is no policy that manages the system for receiving raw materials due to the absence of an appropriate production plan to manage the amount of raw materials received. This results in a shortage or excess supply of raw materials in the storage and an increase in inventory costs. This study aims to determine the production planning, determine the optimum level of raw material inventory, and determine the lot size for shipping raw material of SIR-20 Crumb Rubber in PT. P&P Lembah Karet. The study begins with forecasting raw material of SIR-20 Crumb Rubber demand using four methods consist of linear regression, quadratic, cyclical trend, and exponential. The next step is conducting production planning using the level strategy method. Then, controlling the supply of raw material SIR-20 Crumb Rubber using the Fixed Order Quantity (Q Model) method and the Min-Max method to control raw material requirements and minimize inventory costs. The inventory control using the FOQ method is obtained the optimal inventory level of SIR-20 Crumb Rubber raw materials of 988,881 kg, with an ROP level of 526,570 kg, and safety stock of 342,302 kg. Meanwhile, using the Min-Max method, the optimal inventory level of SIR-20 Crumb Rubber raw materials obtained is 544,084 kg, with an ROP level of 359,816 kg and safety stock of 175.547 kg. The optimal lot size for shipping raw material of SIR-20 Crumb Rubber in PT. P&P Lembah Karet is done using EOQ. Based on the recapitulation of calculations using the EOQ (Economic Order Quantity) method it is known that Syafruddin is the supplier that sends the largest raw material compared to other suppliers with a delivery quantity is 73.560 Tons and frequency of delivery is 9 times per month.

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