Production Planning and Inventory Control of Atonic Fertilizer Products Using Static Lot Sizing Method

Abstract

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.