Determination of optimum animal feed raw material order allocation

Abstract

The availability of raw materials is the key to the implementation of production activities so that suppliers, who are able to supply according to the needs of the company, are needed. If the material that comes is not according to the specifications requested, even though the supplier changes so that the amount of material is still fulfilled, it still causes disruption to the smooth production process. The aim of this study is to assess the supplier’s performance to optimize allocated raw material. This research was conducted at an animal feed factory. The raw materials used include yellow corn and rice bran, obtained from several suppliers. The raw material that comes in part is rejected because it is not in accordance with the requested specifications, among others due to excessive water content, mushroom content and the content of corn cobs that exceed the established limit. In this study, carried out a performance analysis of suppliers referring to 23 supplier assessment criteria by Dickson and used 6 selected criteria, namely quality, delivery, history of supplier performance, claim and guarantee policies, prices and communication systems. The optimal amount of raw material orders from the results of goal programming is allocated to each supplier based on their performance.