Design of Product Inventory Control Models for Cost Efficiency in Organic Vegetable Agroindustry

Defi Norita¹, Ririn Regiana Dwi Satya^2*, Andary Asvaroza Munita³, Asep Endih Nurhidayat⁴

Abstract

Indonesia is an agricultural country that has the opportunity to develop organic agriculture. In recent years, the public’s attention to organic farming has increased. One of the prospective commodities that can be developed using an organic farming system in Indonesia is vegetables. Organic vegetable agroindustry is an agribusiness company in West Java which is engaged in organic agriculture. The problem faced by the Organic vegetable agroindustry is uncontrolled inventory control caused by erratic (dynamic) and fluctuating customer demand. Inventory management aims to determine the planning of organic vegetable commodity control Organic vegetable agroindustry in the context of efficiency and minimizing inventory costs incurred by the company. The Wagner-Within Algorithm method and the Heuristic Silver Meal method have the same goal, namely to produce an optimum message quantity at a low cost. From the results of data processing, it is found that the best proposed method is the inventory cost using the Heuristic Silver Meal method because it can produce the lowest cost compared to the Wagner-Within Algorithm method with a savings of IDR. 64,000,000, – and 26% efficiency from the method applied by the company with a total inventory cost of IDR. 178,235,754.

Keywords

Wagner-Within; Silver-Meal Heuristic; Inventory

Cite This Article

Norita, D., Satya, R. R. D., Munita, A. A., Nurhidayat, A. E. (2022). Design of Product Inventory Control Models for Cost Efficiency in Organic Vegetable Agroindustry. International Journal of Scientific Advances (IJSCIA), Volume 3| Issue 3: May-Jun 2022, Pages 391-397, URL: https://www.ijscia.com/wp-content/uploads/2022/06/Volume3-Issue3-May-Jun-No.274-391-397.pdf

Volume 3 | Issue 3: May-Jun 2022