Optimazation of Fertilizer Inventory With ABC Analysis and Periodic Review on PT. Fajar Tetap Jaya

Life This study aims to optimize the total cost of inventory of finished goods in the form of fertilizers using ABC Analysis and the Periodic Review Method. This company does not yet have a method for calculating the total cost of its inventory. Therefore the researcher aims to categorize the types of fertilizer owned by the company based on ABC Analysis and optimize the total cost of fertilizer supplies using the Periodic Review method to determine the quality of orders by considering the minimum total costs to be incurred by the company. Based on the results of the ABC Analysis in this study, it shows a decrease in the total cost of inventory for 8 types of fertilizers that are classified a and b by using the Periodic Review Method. Based on the calculation results, the total cost according to company policy is IDR 91,130,561,316/year and the total inventory cost based on the Periodic Review method is IDR 81,540,587,907/year. From the results of this study it can be seen that the Periodic Review Method has an optimal total inventory cost, so the company can save 10.5%.