Track: Production Planning and Control

Abstract

Each region has its own characteristics of traditional food, snacks and drinks. One example of traditional processed products are generally made from raw materials of tubers such as cassava, sweet potatoes, and also processed from fruits and made from flour (Sari and Nurrizati, 2018). Through optimal inventory control, companies can meet consumer needs in a timely manner and minimize the cost of raw material inventory so that company goals are achieved (Lahu, E.R., 2017). This research is focused on controlling the inventory of raw materials for chips which will later be useful for minimizing inventory costs so that it affects the company's benefits. The purpose of this study is to describe the inventory of raw materials by determining the number of ordering lots and calculating the optimum total inventory cost for the company. The method used is a continuous review system and a periodic review system by collecting data related to the cost of raw material inventory at the UKM Tungku Sanjai Minang Maimbau. The results obtained are the total cost of raw material inventory, the optimal order lot size of raw materials by comparing the Q and P methods, The optimal total cost of raw material inventory. From the calculation of the two methods then compared to get the best method for controlling the inventory of chip raw materials. 

Keywords
Material Inventory, Inventory Cost, Continuous Review System, Periodic Review System