Optimization of Sand Material Inventory Control to Minimize Costs at PT XYZ.

Optimalisasi Pengendalian Persediaan Material Pasir untuk Meminimalkan Cost pada PT XYZ

Abstract

General Background Inefficient inventory management leads to stock accumulation or shortages, disrupting operational continuity in manufacturing and distribution companies. Specific Background PT XYZ currently relies on subjective estimation for material ordering, causing significant fluctuations in sand inventory levels. Knowledge Gap Existing procurement practices lack systematic formulas for optimal order quantities, safety stock, and reorder points, increasing overall inventory expenses. Aims This study analyzes sand material control using Economic Order Quantity, Safety Stock, and Reorder Point methods to minimize total inventory costs. Results The analysis indicates an optimal ordering quantity of 2,827.05 tons per order with a frequency of 4 times per period, a safety stock of 2,030.54 tons, a reorder point of 2,339.24 tons, and an efficient Total Inventory Cost of Rp41,675,539. Novelty This work establishes an integrated inventory optimization model combining empirical EOQ, probabilistic safety stock, and precise reorder point thresholds tailored for concrete manufacturing aggregate supply chains. Implications Systematic inventory control successfully prevents material imbalances, reduces expenditures, and maintains seamless operational continuity.

KEY FINDINGS HIGHLIGHTS

1. The optimal ordering quantity for sand material is established at 2,827.05 tons per order with an ideal frequency of 4 times per period.

2. Maintaining a safety stock of 2,030.54 tons and setting a reorder point at 2,339.24 tons effectively mitigates supply uncertainty and prevents stockouts.

3. Implementing the integrated inventory control approach successfully yields an efficient Total Inventory Cost of Rp41,675,539.

Keywords Inventory Control, Economic Order Quantity, Reorder Point, Safety Stock