Open AccessProduction Planning and Inventory Control of Atonic Fertilizer Products Using Static Lot Sizing Method
Author(s) -
Hendy Tannady,
Joseph M J Renwarin,
Andi Nurhikmah Daeng Cora,
Edi Purwanto
Publication year - 2021
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.179
H-Index - 26
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/819/1/012087
Subject(s) - economic order quantity , sizing , production (economics) , inventory control , order (exchange) , operations research , control (management) , fertilizer , inventory cost , raw material , holding cost , computer science , operations management , business , economics , mathematics , microeconomics , marketing , finance , art , supply chain , chemistry , organic chemistry , artificial intelligence , visual arts
This research was conducted at one national manufacturer that focus on production and distribution of fertilizer products. The name of the firm is PT OAT Mitoku Agrio (OMA), OMA is a company that works as a registration holder, importer of raw materials, formulators, and marketers of Atonic growth regulators and Metallic organic fertilizers that are widely used by farmers in Indonesia. Economic Order Quantity (EOQ) is one of the calculations method used to determine the quantity of company orders with a predetermined frequency and when is the appropriate time for the firm to make a reorder. This method aims to minimize total inventory cost so that inventory efficiency runs well, thus an optimal number of ordering units can be reached with minimum costs. Based on the results of this study, the EOQ method provides the most optimal order quantity with a most minimum cost.