In PT Budi Makmur Jayamurni, it seemed that there was a problem in the chemical material stock. The shortage of chemical material, especially the imported ones, often occurs. The imported chemicals have high setup cost and long ordering lead-time.
The objective of this research is to obtain the appropriate method in defining the optimum order lot-size and order point for multi-items that are purchased from many suppliers. The proposed policy uses the fixed order-period approach and it is run using Microsoft
Excel. This approach is used to determine the order quantity using the proportion of each chemicals.
The existing method of defining the order point and order quantity is not appropriate as it causes a very high procurement cost. With the new proposed method, the total cost can be decreased in very significant value. The total cost of current policy for Mine Trading is Rp 101,011,302.90, for Buckman Rp 73,992,773.84, for ALPA Rp 128,157,817.25; while the total cost of proposed policy for Mine Trading is Rp 80,458,318.80, for Buckman Rp 61,614,214.60, and for.ALPA Rp 84,455,738.90.