Inventory Control of Raw Material of Sawdust for The Production of Wood Pellets with Supply Chain Management Approach at PT Multi Energi Biomassa
Keywords:
Inventory Control, Bullwhip Effect, Supply Chain Management, Economic Order Quantity, Total Inventory CostAbstract
PT Multi Energi Biomassa is a company engaged in the production of renewable energy that located in Wonosobo, the product is wood pellet. The problem that occurs in company is the availability of raw materials of sawdust is always left a lot after production, this lead to accumulation of raw materials and increasing the cost of storage. This research is aims to control the inventory of raw materials so that there is no accumulation of raw materials so that total inventory cost can be reduced to a minimum. This research uses Supply Chain Management approach. The results of this research showed that bullwhip effect after forecasting of demand using exponential smoothing method with α = 0.95 decreased from 1.127 to 1, where the value of bullwhip effect parameters 1,028. The optimal number of orders (EOQ) increased by 3.16% from 3,417 kg to 3,512 kg, but the frequency of request decreased from 300 times to 272 times. Total inventory costs without and with supply chain coordination decreased by 7.19% from Rp. 98,225,880 to Rp. 91,191,555. Inventory cost savings per period before and after coordination of supply chain is Rp. 7,064,325.
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