Comparison Analysis of Min-Max Method with EOQ Method in Controlling NPK Fertilizer Raw Material Supply

The prospects for the fertilizer company remain favorable, notwithstanding the decline in the quantity of agricultural area converted to settlements. The growing population, together with the increasing need for food, puts the nation under more pressure to raise the yield of food crops. Domestic demand growth is being driven by the plantation industry, where Indonesia is the third largest exporter of rubber and cocoa. PT JKL is one of the Indonesian enterprises involved in the fertilizer sector. Production is heavily impacted by the availability of raw materials to process. NPK fertilizer is one kind of product that was examined in this research (Nitrogen, Phosphorus, and Potassium). DAP, CLAY, KCI Powder, and KCI Flake are the four essential components used to make NPK fertilizer. In this research, we compared the Min-max approach to the EOQ (Economic Order Quantity) method. Considering the entire cost spent, the findings indicated that establishing the EOQ and Min-max approaches was beneficial for planning the management of NPK raw materials in order to avoid shortages and overstocks. In comparison to the two ways, the EOQ method is ideal for the four raw materials.