3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

Application of ABC Analysis to Control Inventory and Material Excesses of the Winston Rattan Highback Armchair at PT Kharisma Rotan Mandiri

Hilmi Septabiyya & Wahyudi Sutopo
Publisher: IEOM Society International
0 Paper Citations
Track: Undergraduate Student Paper Competition


PT. Kharisma Rotan Mandiri is a rattan furniture manufacturer and exporter company established in 1998 that produces various of furniture models and home decorations made of rattan, wood, and iron alloys. Based on direct observations made by the author and discussions with the company, there is a buildup of unused materials for the Winston Rattan Highback Armchair chair in the cutting building. Based on discussions that have been carried out by the author with the company, it was found that PT Kharisma Rattan Mandiri has not managed material inventory efficiently so that there is often a buildup of residual materials that hinder operator performance and harm the company's investment costs. The Winston Rattan Highback Armchair chair was chosen as the object of research because it is a product that is included in the push product (a product with high demand) so the company needs to maintain the availability of material stocks. Inventory control is needed in the management of materials Winston Rattan Highback Armchair as an effort to maintain optimal availability of materials with the aim of stacking the remaining materials which harms the company's investment costs and hinders the work of production operators to be reduced. ABC analysis is one of the methods used in inventory planning and control. The main focus of the ABC Analysis is to group inventory based on the cumulative amount of usage and investment value of each existing inventory. This grouping is carried out to determine control priorities and assist operators in facilitating the diversification of inventory records. The conclusion of this study is that the stock of Winston Rattan Highback Armchair are medium moving because most of the the material for the Winston Rattan Highback Armchair, categorized as B, namely eight items. Category A has the least amount of materials, namely as many as 2 items. Through the analysis of the investment value, it is known that many material items in group C have low investment values. So that the purchase can be reduced or replaced with other materials and can reduce the risk of causing a high risk of accumulation of residual materials and large investment costs.

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767