Demand Forecasting And Inventory Control Of Frozen Pork Products At Pt. Xyz

Abstract

PT. XYZ is a distributor of frozen pork various product types, high product demand, resulting in inventory shortages and order delays. This study aims to classify products based on usage and cost levels using the ABC method, obtaining the best forecasting method from the time series method, obtaining the optimal order quantity using the Economic Order Quantity method, as well as sensitivity analysis of the optimal quantity for classified A products. five types of products are included in class A, namely: pork belly skin on, pork belly skin off, pork leg boneless, pork neck, and pork shoulder. The best demand forecasting results with exponential smoothing method for pork belly skin on, pork belly skin off, and pork shoulder products, as well as the linear trend line model method for pork leg boneless and pork neck. The percentage of savings on total inventory costs is 13 percent to 60 percent. The results of the sensitivity analysis show that the input cost of storage is the most sensitive to changes in the optimal order value. The application of some of these methods can provide sufficient raw materials and avoid shortages of inventory so that there are no delays in orders, and can improve cost efficiency