The Method of Production Planning and Inventory Control to Minimize Procurement Raw Materials Costsfor Potato Chips Production (Case Study at CV. Lima Roti Dua Ikan)

Authors

  • Nadine Nasya Riesta Program Studi Teknik Pertanian, Fakultas Teknologi Pertanian, Institut Pertanian Stiper Yogyakarta, Indonesia
  • I Wayan Widia Program Studi Teknik Pertanian, Fakultas Teknologi Pertanian, Institut Pertanian Stiper Yogyakarta, Indonesia
  • I Gst Ketut Arya Arthawan Program Studi Teknik Pertanian, Fakultas Teknologi Pertanian, Institut Pertanian Stiper Yogyakarta, Indonesia

DOI:

https://doi.org/10.24843/JBETA.2022.v10.i02.p06

Keywords:

production planning, inventory control, procurement raw materials, potato chips

Abstract

Minimizing costs in order to achieve low procurement raw materials costs and more competitive product selling prices so obtain a high profit. This study aims to determine the method of production planning and inventory control for minimizing expenses for potato chips production. The data used are short-term data that will be calculated for the next year, were obtained from the company CV. Lima Roti Dua Ikan that produce potato chips since 2013. The required data is monthly data for the last 3 years, January 2018 to December 2020. Production planning method is evaluated based on two methods including SMA and ES, while inventory control method is evaluated based on two methods including EOQ and JIT. The results showed that a better method used for production planning is ES with a coefficient smoothing of 0.1 which results in MAPE value of 0.43%. An economical method used for inventory control is EOQ which has a difference from the company's actual data of 35.71% in 2018 amounting to Rp 19.198.507,29, of 31.69% in 2019 amounting to Rp 20.104.228,21 and of 28.91% in 2020 amounting to Rp 18.591.797,07. The results of the calculation of cost inventory control showed that EOQ is the most economical method compared to the system that has been implemented and to the JIT. Production planning method based on demand forecasting having the smallest value of error is ES with a coefficient smoothing of 0,1 and inventory control method that has the most economical value is EOQ.The most economical method is becauseithad the maximumsavings.

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Published

2022-09-30

How to Cite

Riesta, N. N., Widia, I. W., & Arthawan, I. G. K. A. (2022). The Method of Production Planning and Inventory Control to Minimize Procurement Raw Materials Costsfor Potato Chips Production (Case Study at CV. Lima Roti Dua Ikan). Jurnal BETA (Biosistem Dan Teknik Pertanian), 10(2), 244–252. https://doi.org/10.24843/JBETA.2022.v10.i02.p06

Issue

Vol. 10 No. 2 (2022): September

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