Controlling the Inventory of Boiler Ash Raw Materials in Organic Fertilizer Using the Minmax Method (Case Study: UMTR Belilas Organic Fertilizer)

Dhimas Aditama; Tengku Nurainun; Fitriani Surayya Lubis; Nofirza Nofirza; Anwardi Anwardi

doi:10.22441/ijiem.v7i1.31728

Authors

Dhimas Aditama Department of industrial engineering, Sultan Syarif Kasim State Islamic University, Riau, Jl. HR. Soebrantas No. 155 Km. 18 Simpang Baru Panam Pekanbaru 28293, Indonesia
Tengku Nurainun Department of industrial engineering, Sultan Syarif Kasim State Islamic University, Riau, Jl. HR. Soebrantas No. 155 Km. 18 Simpang Baru Panam Pekanbaru 28293, Indonesia
Fitriani Surayya Lubis Department of industrial engineering, Sultan Syarif Kasim State Islamic University, Riau, Jl. HR. Soebrantas No. 155 Km. 18 Simpang Baru Panam Pekanbaru 28293, Indonesia
Nofirza Nofirza Department of industrial engineering, Sultan Syarif Kasim State Islamic University, Riau, Jl. HR. Soebrantas No. 155 Km. 18 Simpang Baru Panam Pekanbaru 28293, Indonesia
Anwardi Anwardi Department of industrial engineering, Sultan Syarif Kasim State Islamic University, Riau, Jl. HR. Soebrantas No. 155 Km. 18 Simpang Baru Panam Pekanbaru 28293, Indonesia

DOI:

https://doi.org/10.22441/ijiem.v7i1.31728

Keywords:

Inventory control, Min max method, Raw material, Forecasting

Abstract

This study evaluates the inventory management of boiler ash raw materials in an independent organic fertilizer company, UMTR Belilas, using the Min-Max method supported by forecasting. The main problem in this study is that consumer demand is often not met on time due to suboptimal inventory management. The purpose of this research is to maintain the availability of raw materials in order to meet consumer demand optimally while reducing the risk of out-of-stock and overstocking. The results show that the application of the Min-Max method results in a minimum stock limit of 88.5 kg and a maximum stock of 171 kg, with an optimal purchase quantity of 82.5 kg per order. The safety stock level is calculated at 6.1 kg, while the Reorder Point (ROP) is set at 88.5 kg. With an order frequency of 120 times per year, this method has succeeded in optimizing storage costs through faster stock turnover. The combination of the Min-Max method and forecasting has proven to be effective in responding to fluctuations in demand, ensuring the availability of raw materials on time, and supporting the operational sustainability of organic fertilizer production.

Downloads

Download data is not yet available.

References

Anshori, M., & Widyaningrum, D. (2022). Forecast demand for fast-breaking products using the Moving Average and Single Exponential Smoothing methods. Journal of Serambi Engineering, 7(4), 3727-3730.

https://doi.org/10.32672/jse.v7i4.4701

Briffa, J., Sinagra, E., & Blundell, R. (2020). Heavy metal pollution in the environment and its toxicological effects on humans. Heliyon, 6(9), 2-5.

https://doi.org/10.1016/j.heliyon.2020.e04691

Handayani, R., & Afrianandra, C. (2022). Analysis of Raw Material Inventory Control Using the Economic Order Quantity (EOQ) Method in Determining Periodic Order Quantity (POQ) (Case Study of Soybean Tempeh Factory). Scientific Journal of Accounting Economics Students, 7(2), 308-323.

https://doi.org/10.24815/jimeka.v7i2.21435

Harahap, N. A. P., Al Qadri, F., Harahap, D. I. Y., Situmorang, M., & Wulandari, S. (2023). Analysis of the Development of Indonesia's Manufacturing Industry. El-Mal: Journal of Islamic Economics & Business Studies, 4(5), 1444-1450.

https://doi.org/10.47467/elmal.v4i5.2918

Hernawati, Y., Mulyadi, N. P., Lestari, T., & Rabbani, D. F. (2020). Evaluation of the finished goods stock control system at the warehouse of Pt. Indocare Citra Pasifik Group. E-Journal of Management Balance, 6(2), 20-27.

https://jurnal.upb.ac.id/index.php/equalibrium/article/view/102?utm_source=chatgpt.com

Hudaningsih, N., Utami, SF, & Jabbar, WAA (2020). Comparison of Estimated Sales of Aknil Products of Pt. Sunthi Sepuri using the Single Moving Average and Single Exponential Storming Method. Journal of Informatics Technology and Science (Jinteks), 2(1), 15-22.

https://doi.org/10.51401/jinteks.v2i1.554

Ihsan, H., Syam, R., & Ahmad, F. (2018). Sales Forecasting with Exponential Smoothing Method (Case Study: Sales of Seasonal Meatballs/Kiloan of Bang Ipul Meatball House). Journal of Mathematics, Computing, and Statistics, 1(1), 1-7.

https://doi.org/10.35580/jmathcos.v1i1.9168

Khadarusman, R. (2024). Application of the Moving Average Method to Predict Perfume Stocks. bit-Tech, 7(1), 104-112.

https://doi.org/10.32877/bt.v7i1.1563

Manik, A., & Marbun, N. S. (2021). Analysis of Merchandise Inventory Control Using the Economic Order Quantity (EOQ) Inventory Model at Pt. Kimia Farma Apotek Iskandar Muda Medan Branch. Journal of Global Management, 10(2), 184-195.

https://doi.org/10.46930/global.v10i2.1831

Mollah, MK, & Saputra, AD (2022, March). The Application of Sales Forecasting Using the QM POM Application on Sugar Products at the Candi Baru Sugar Factory PT. Proceedings of SENASTITAN: National Seminar on Sustainable Industrial Technology, 2, 449-458.

https://ejurnal.itats.ac.id/senastitan/article/view/2769?utm_source=chatgpt.com

Pradana, VA, & Jakaria, RB (2020). Controlling the supply of sugar raw materials using the EOQ and just-in-time method. Bina Teknika, 16(1), 43-48.

https://doi.org/10.54378/bt.v16i1.1816

Priambudi, B. (2023). Analysis Of Inventory Control of Goods with A Comparison of Economic Order Quantity (EOQ) and Just in Time (JIT) Methods in PT. Astra Otoparts TBK (Case Study: Shop & Drive Sunter 1) (Doctoral Dissertation: Mercu Buana University, Jakarta).

https://publikasi.mercubuana.ac.id/index.php/mbcie/article/view/25151?utm_source=chatgpt.com

Putri, A., Helmiah, F., & Azmi, S.R.M. (2022). Application of the EOQ Method for the Provision of Organic Fertilizer in the Mentanti Village Unit Cooperative (KUD). J-Com (Journal of Computers), 2(1), 47-56.

https://doi.org/10.33330/j-com.v2i1.1582

Rachmawati, NL, & Lentari, M. (2022). The application of the Min-Max method to minimize the stock and excess stock of raw material inventory. Journal of Industrial Engineering INTECH, Serang Raya University, 8(2), 143-148.

https://doi.org/10.30656/intech.v8i2.4735

Ratningsih, R. (2021). The application of the Economic Order Quantity (EOQ) method to improve the efficiency of controlling raw material inventory at CV Syahdika. Journal of Perspective, 19(2),158-164.

https://doi.org/10.31294/jp.v19i2.11342

Riyadi, I. Z., Hardiyono, H., & Zainul, L. M. (2024). Hazard Identification and Risk Assessment in the Sandblasting Process of PT Budhi Wiguna Prima. Idifikasi, 10(1), 99-106.

https://doi.org/10.36277/identifikasi.v10i1.328

Rizalmi, SR, & Sudarni, AAC (2022). Sugar production is estimated using a single exponential smoothing method in PG. XYZ. In the Proceedings of the National Seminar on Law, Business, Science and Technology, 2(1), 1185-1185).

https://ojs.udb.ac.id/index.php/HUBISINTEK/article/view/1508/1191?utm_source=chatgpt.com

Rusyida, WY (2022). Forecasting Techniques: ARIMA and Holt Winter Methods. NEM Publisher.

https://books.google.com/books/about/Teknik_Peramalan.html?id=z9-mEAAAQBAJ&utm_source=chatgpt.com

Saripudin, MF (2024). Comparison of raw material inventory procurement using the EOQ and Min Max methods at PT XYZ. Journal of Serambi Engineering, 9(1), 7968-7977.

https://doi.org/10.32672/jse.v9i1.808

Sartika, D. (2020). Analysis of Demand Forecasting and Inventory Control of Auxiliary Raw Materials in the Sugar Industry (Case Study of PT. XYZ North Lampung). Journal of Applied Agricultural Research, 20(2), 148-160.

https://doi.org/10.25181/jppt.v20i2.1636

Silvya, Z., Zakir, A., & Irwan, D. (2020). Application of the Weighted Moving Average Method for Forecasting Pharmaceutical Product Inventory. JiTEKH, 8(2), 59-64.

https://doi.org/10.35447/jitekh.v8i2.220

SJ, IPAM, & Purnomo, H. (2023). Analysis of planning and control of raw material inventory against the production process in race interior design. National Symposium on Management and Business (SIMANIS), Call for Paper, 2, 1617-1629.

https://proceeding.unpkediri.ac.id/index.php/simanis/article/download/3387/2626/14043?utm_source=chatgpt.com

Sofwan, SV, Iqbal, M., & Irdianti, Y. (2020). Application of the Method of Recording Drug Supplies at the Cipedes Health Center. Accurate Scientific Journal of Accounting Fe Unibba, 11(2), 33-39.

https://ejournal.unibba.ac.id/index.php/akurat/article/view/313?utm_source=chatgpt.com

Wirabhuana, A., Farihah, T., & Agustina, D. (2007). Production System Teaching Materials, 6-7.

https://digilib.uin-suka.ac.id/id/eprint/41208/1/Buku%20Ajar%20SISTEM%20PRODUKSI.pdf