Inventories Analysis of Animal Feed Raw Materials by Using the Silver Meal Method and Wagner within Algorithm (Case Study of PT. XYZ Makassar)

Abstract

Abstract PT. XYZ Indonesia is a national company engaged in animal feed production. through the Production Planning Inventory Control (PPIC) department has implemented the Material Requirement Planning (MRP) system for inventory control but in the implementation of the company’s MRP system, the PPIC department only considers the quantity of raw materials that can meet demand without regard to the issue of lot size inventory efficiency, so that the cost of raw material inventory is high. The purpose of this research is to compare the cost of procuring raw materials that have been carried out by the company with the cost of procuring raw materials using the silver meal method and Wagner Within algorithm. From the results of research and analysis conducted a comparison between the methods used by the company with the lot size silver meal method and Wagner Within algorithm in order to obtain the total inventory cost of raw materials in 2016, where yellow corn and rice bran raw materials have the same inventory costs between the methods used by the company, the silver meal method and the Wagner Within algorithm method are Rp. 1,080,000 so they do not have cost savings. As for the inventory of lime stone raw materials, it is more optimal to use the silver meal method and Wagner Within algorithm with a total inventory cost of Rp. 606,394 and can save costs by 35.08%.