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there. The number or capacity of the first order is not in accordance with the
required capacity, but exaggerated to anticipate any problems in the delivery of
raw materials or finished stock supplier, so if there are production problems
continue to run. The next order adapted to the capacity need to keep the number of
items stored that do not exceed the storage capacity
Order capacity is determined using a method that will obtain the most economical
frequency. The method used is the Economic Order Quantity (EOQ). The purpose
of EOQ method is to determine when and how much is the inventory must be
ordered at certain time to minimizes the cost of the annual inventory.In other word
EOQ determine the optimum number of orders at any given time is determined by
balancing two factors:
a. Ownership costs (storage) of raw materials
Usually expressed as a percentage of average investment in inventory, because
most common variable is the interest cost and the cost of capital.
b. Ordering Cost
Fixed cost of raw materials ordering is irrelevant, because only the variable costs
or cash costs should be included in the purchase. The booking fee includes the
cost of making proof of purchase requests, purchase orders, receiving reports,
handle shipments, communication with suppliers, accounting and payment upon
delivery and other charges due to insufficient supplies including loss of
opportunity for savings in the purchase and utilization of duty discounts on
purchases.
EOQ=
Fee
d
sto
ck
per
we
ek
(kg
)
208
892
4
6121
99.6
427
11.6
106
77.9
1241
46.2
866
1.36
216
5.34
5969
0.88
416
4.48
104
1.12
1197
63.6
835
5.6
208
8.9
505.
68
35.2
8
8.82
Raw
Mate
rial
Fee
d
sto
ck
per
day
(kg
)
Fee
d
sto
ck
per
yea
r
(kg)
Water
34
81
54
1.2E
+08
Guar
Seeds
Xanth
an
Gum
Powde
r
1,77
9.65
Boric
Acid
173.
52
Aceto
ne
Methy
l
Parahy
droxy
Benzo
ate
Propyl
Parahy
droxy
Benzo
ate
348.
15
360.
89
1.47
68.8
0.2
4.8
B
as
e
(k
g)
1,
00
0
Pric
e
per
kg
Total
price
per
base
Rp14
.50
Rp831.3
9
IDR
7,77
0.00
Rp7,770,
000
10
0
IDR
38,8
50.0
0
IDR
6,47
5.00
IDR
13,5
58.6
5
50
IDR
62,1
60.0
0
25
IDR
82,8
80.0
0
10
00
10
0
1.2
Rp38,85
0,000.00
Rp647,5
00
Rp1,355,
865.00
Total
delive
ry
cost
per
base
Or
d
er
ti
m
e
(d
ay
)
EOQ
EOQ
(Appro
achme
nt)
Tot
al
ord
er
per
da
y
(kg
)
Saf
ety
sto
ck
(kg
)
Safety
stock
(Appro
achme
nt)
700,00
0.00
Rp3,108,
000
Total
order
per
year
(time
s)
Total
order
per
year
(times)
(Appro
achme
nt)
10
11227
8.3451
112279
177
96.5
266
9.48
2670
114
949
204
66.5
5.4524
85327
13377.
19776
13378
721.
78
108.
267
109
134
87
830.
78
9.2798
74421
10
7185.0
22259
7186
347.
04
52.0
56
53
723
9
400.
04
8.3065
51628
7033.1
22948
7034
696.
3
104.
445
105
713
9
801.
3
17.026
38612
18
220.93
16881
221
7.35
1.10
25
223
9.35
2.2881
44796
49.903
38155
50
0.15
51
1.376
7,000,0
00.00
700,00
0.00
Re
ord
er
poi
nt
(kg
)
1.2
E+0
8
0
20,000,
000.00
Ord
er
siz
e
(kg
)
750,00
0.00
Rp2,072,
000
375,00
0.00
Raw materials such as steel drums is ordered from PT Rheem Indonesia, the
alumunium can ordered from PT United Can and cardboard is ordered from CV
Jordan Packing. The drums and cans received already printed the logo and writing
on the packaging of products Naturathciks. The process will be carried out in the
factory packaging using packaging machinery. Raw materials ordered one bottle
in 2 weeks because of the location close to suppliers and takes pretty much every
day. This is done to minimize the possibility of delays or problems when sending
larger so should be given a greater period of time between ordering and receipt of
goods.
Raw Material Scheduling
In this scheduling there are two steps, first is order the materials, and second is the
time materials are received. We order raw materials based on EOQ that calculated
on table_._ . The material will received on different circumstances. Example, guar
seeds is import from India with shipping day between 7-10 day but in for safety
,regulation aspect and logistic from Tanjong Priok to Cikarang, we expected to
receive guar seeds 1-2 week after order. But for material that produces in
Indonesia, Aceton, Boric Acid, Xanthan Gum Powder, because the supplier is
located near the factory, it will delivered on 2-3 days after order but we extend for
a week or more to anticipate unexpected events. Methyl Parahydroxy Benzoate
and Propyl Parahydroxy benzoate, which is imported from China, will delivered
by ships on 5-7 day after order, but it will delivered on factory a week after order
because the safety,regulation aspect and logistic from Tanjong Priok to Cikarang.
To determine the scheduling we analyze when we order the raw materials by
calculate our remaining feed stock with formula:
Remaining Feed Stock : Prev ious Feed Stocks Amount of Raw Materials Needed Per Day
If the remaining feed stock is lower than amount of raw materials needed per day,
we order the raw material before based on its order time. The curve is made
based on data on the Appendix _ and for the timeline, its shown on figure _._
bellow.
60000
40000
20000
0
0
50
100
150
200
250
Days
Figure _._
300
350
5000
0
0
50
100
150
200
250
300
350
Days
Figure _._
Acetone Scheduling
8000
6000
Kilogram 4000
2000
0
0
50
100
150
200
250
Days
Figure _._
300
350
4000
2000
0
0
50
100
150
200
250
300
350
Days
Figure _._
150
100
50
0
0
50
100
150
200
250
300
350
Days
Figure _._
30
20
10
0
0
50
100
150
200
250
300
Days
Figure _._
350