DOI : https://doi.org/10.29165/ajarcde.v10i3.1399

Spare Parts Inventory Management at PT XYZ Palm Oil Mill

Ima Safriza (1), Jonrinaldi Jonrinaldi (2), Alexie Herryandie Bronto Adi (3)
(1) Department of Industrial Engineering, Andalas University, Padang, Indonesia
(2) Department of Industrial Engineering, Andalas University, Padang, Indonesia
(3) Department of Industrial Engineering, Andalas University, Padang, Indonesia
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How to cite (AJARCDE) :
Safriza, I., Jonrinaldi, J., & Adi, A. H. B. (2026). Spare Parts Inventory Management at PT XYZ Palm Oil Mill. AJARCDE (Asian Journal of Applied Research for Community Development and Empowerment), 10(3), 898–904. https://doi.org/10.29165/ajarcde.v10i3.1399
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Spare parts inventory management is an important aspect of supporting smooth production operations in the palm oil industry. A uniform ordering policy may mismatch inventory levels with the demand characteristics of individual spare parts. This study aims to propose a spare parts inventory management policy that is appropriate to the investment value and usage characteristics of each spare parts group at the PT XYZ Palm Oil Mill. The research data consist of 606 spare-part items. A total of 165 items with low usage frequency, namely one to two units per year, were separated and managed using the Base-stock Policy. The remaining 441 items were classified using the ABC method, resulting in 139 Class A items, 133 Class B items, and 169 Class C items. The Continuous Review System with the (Q,r) model was proposed for Class A, the Periodic Review System with the (R,s,S) model for Class B, and the Base-stock Policy for Class C and low-usage items. The calculation results show that the total inventory cost under the proposed policies was IDR 5,554,470,447.17, compared with IDR 5,769,207,095.63 under the existing policy. Thus, the proposed policies resulted in savings of IDR 214,574,146.90 (3.72%). The results indicate that implementing differentiated inventory policies based on ABC classification and usage characteristics can serve as an alternative approach to spare parts inventory management in the company.


Contribution to Sustainable Development Goals (SDGs):
SDG 8: Decent Work and Economic Growth
SDG 9: Industry, Innovation and Infrastructure
SDG 12: Responsible Consumption and Production

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