Indonesia is one of the producer oil and gas. With its natural resources, Indonesia has its big potential to be explored and get the revenue from this activity. Nowadays the consumption of fuel is getting higher year by year and since the price of oil has been getting rise twice the highest price year and since of oil has been getting rise twice the highest price where it's almost touch US110/barrel its rose the revenue of oil company. Under of PT. Medco Energy International PT Medco E&P is the 3rd biggest oil and gas company in Indonesia, which is the operator who operates around 12 blocks in Indonesia success to manage the production but there is a high cost in term of solar to support the activity. It is an inventory problem that PT. Medco E&P faced, scarcity or more precisely in term of solar procurement for operation. PT. Medco have formula to calculated the Safety Stock and Reorder Point but sometimes when the plant is in full capacity there is no stock and its can effects the delay time in production and caused the on time peformance is low in finsihing the project. In once year there is 117 Purchasing Order and sometimes it just order for 100 Liters of solar. When I try to compare with a supply chain method, there is a big different between Medco Version and Supply Chain. But the different can accomodate the lead time there for it an make an ordering cost decreased at least it can decreased number of PO (Purchasing Order). I believed when PT. Medco apply this method, it can make a decreased ordering cost and make an efficiency in term of time and money.



Research Location : PT. Medco E&P Indonesia



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