Raw Material Inventory System at The Plywood Industry in South Sulawesi

The aim of this study was to evaluate raw material inventory system applied at a plywood\ud industry in South Sulawesi, which was PT. Panca Usaha Palopo Plywood (PT. PANPLY).\ud For the purpose of the study, the data of raw material supply and consumption during five\ud years (2005-2009) as well as inventory management and operation costs were colleted.\ud Data were then analyzed by using Economic Order Quantity (EOQ) approach. Results\ud showed that the supply system of log raw material was reorder point approach. The\ud optimum order of logs from shorea group was 706,93 m3 with the cycle of 2 days or with\ud the yearly order frequency of 133 times. Re-order must be executed when the availability\ud of its stock became 7225,96 m3. Whilst, the optimum order of mixed species group was\ud 771,65 m3 with the cycle of 2 days or with the yearly order frequency of 145 times. For\ud this group, re-order must be executed when the availability of stock became 8609,72 m3