Analysis of PVC-based Product Inventory Control with Economic Production Quantity and Lagrange Multiplier Methods at PT. XYZ
DOI:
https://doi.org/10.22441/ijiem.v5i1.22308Keywords:
EPQ, Inventory, Lagrange multiplierAbstract
PT XYZ is a manufacturing company that produces various kinds of products made from PVC (Polyvynil Chloride). Some of the PVC-based products produced by PT XYZ are transparent sheet, colour sheet, and flooring. The problem that exists at PT XYZ is that the company often produces more than the amount of demand which makes the company have to prepare a storage warehouse with a capacity as large as the number of products produced. With this, the storage warehouse experiences overcapaity in controlling the inventory of products produced by the company. And it can be concluded that the problem that occurs at PT XYZ is inventory control and production quantity planning that has not been well planned. Based on the problems that occur at PT XYZ, the most suitable method used to solve these problems is the Lagrange Multiplier method. This research has a purpose to control the inventory of products made from PVC so as to minimize the total cost of product inventory at PT. XYZ. From the research This study found the optimal production amount of 1,332,999 m. Where with the amount of production, the company needs a warehouse area of 9,299.9 m3. The total inventory cost calculated using the Lagrange Multiplier method is IDR 377,073,841,401 while the company's total inventory cost is IDR 402,844,596,680. So that a savings of IDR 25,770,755,279 or 6.40% is obtained.Downloads
References
Bollapragada, R., Mankude, A., & Udayabhanu, V. (2021). Forecasting the price of crude oil. DECISION 2021 48:2, 48(2), 207–231. https://doi.org/10.1007/S40622-021-00279-5
Gaspersz, Vincent. 2008. Production Planning and Inventory Control (PPIC), Berdasarkan Pendekatan Sistem Perintegrasi MRP II dan JIT Menuju Manufakturing 21. Jakarta: Gramedia Pustaka Utama.
Lalu, Sumayang. 2003. Dasar-Dasar Manajemen Produksi dan Operasi. Edisi Pertama. Jakarta: Salemba Empat
Pratama, I., & Ernawati, D. (2023). Inventory Control Analysis of Sticker Raw Materials Using Continuous (Q) and Periodic Review (P) Methods at PT Adiguna Label Indonesia. IJIEM : Indonesian Journal of Industrial Engineering & Management, 4(3),331-342. https://doi.org/10.22441/ijiem.v4i3.20967
Putra, D., Rusindiyanto., & Santoso, B. 2017. Perecanaan Dan Pengendalian Produksi Untuk Meminimalkan Biaya Produksi Dengan Metode Economic Production Quantity Multi Item Di CV. Fajar Teknik Sejahtera. Journal of Industrial Engineering Tekmapro.
Ristono, Agus. 2013. Manajemen Persediaan. Graha Ilmu, Yogyakarta.
Rizky, C., Sudarso, Y., & Sadriatwati, S. E. (2017). Analisis Perbandingan Metode EOQ dan Metode POQ Dengan Metode Min-Max Dalam Pengendalian Persediaan Bahan Baku Pada PT Sidomuncul Pupuk Nusantara. Admisi dan Bisnis, 17(1), 11–22. http://dx.doi.org/10.32497/ab.v20i1
Sanvier, R. (2018). Pengendalian Persediaan Produk dengan Metode Lagrange Multiplier di PT. Panahmas Ekatama Distrindo Malang. Surabaya: Universitas Pembangunan Nasional “Veteran” Jawa Timur.
Susanto, S. (2018). Optimalisasi Model Persediaan Economic Production Quantity (EPQ) Multi Item dengan Kendala Investasi dan Kapasitas Penyimpanan pada Gudang Produk Akhir. Jurnal Teknik, Elektronik, Engine, 5(1), 26-33. Syukron, A., dan Kholil M. (2014). Pengantar Teknik Industri. Yogyakarta: Graha Ilmu
Syukron dan Kholil. 2014. Pengantar Teknik Industri. Graha Ilmu, Yogyakarta.
Tuffahati, S., & Pulansari, F. (2023). Analysis of Cocoa Bean Inventory Control with Continuous (Q) and Periodic (P) Review System Methods at Majapahit Chocolate Factory. IJIEM: Indonesian Journal of Industrial Engineering & Management, 4(3),252-258. https://doi.org/10.22441/ijiem.v4i3.20812
Zulfikarijah, Fien. 2005. Manajemen Persediaan. Malang: Universitas Muhammadiyah Malang Press.
Downloads
Published
How to Cite
Issue
Section
License
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that:
1. This paper has not been published in the same form elsewhere.
2. It will not be submitted anywhere else for publication prior to acceptance/rejection by this Journal.
3. A copyright permission is obtained for materials published elsewhere and which require this permission for reproduction.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
1. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in the Work.
2. Authors may reproduce or authorize others to reproduce the Work or derivative works for the authors personal use or for company use, provided that the source and the UMB copyright notice are indicated, the copies are not used in any way that implies UMB endorsement of a product or service of any employer, and the copies themselves are not offered for sale.
3. Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
