Abstract

This study intends to evaluate the inventory strategy analysis of manufacturing firms, particularly applied steel product manufacturing companies engaged in manufacturing for the zinc or steel industry utilizing CRC (Cold Rolled Coil) in two countries in the ASEAN region: Thailand and Indonesia. The sample companies in this study are companies producing applied steel products sized 020 x 914 x C (H) and 020 x 762 x C (H) in greater Jakarta (Jakarta, Bekasi and Tangerang) industrial area in Indonesia and Bangkok, Thailand. The expected outcome of this study is that the determination of raw material control policies under the EOQ (Economic Order Quantity) approach is more optimal and efficient than the determination of raw material control using conventional methods. This study is using order quantity that includes the digital price setting to analyze the raw materials purchasing. It figures out how many orders are cost-effective for each order with a set frequency and when to reorder to minimize total inventory cost. Thus, inventory efficiency runs well and an optimal number of ordering units can be achieved by keeping costs to a minimum. The results elucidate that, at a certain point, although the cost of salary is more expensive in Thailand, nonetheless, the industry could maintain the cheaper price because of the efficient way of reducing the cost of the order and balancing the stock of orders and utilization. This study intends to evaluate the inventory strategy analysis of manufacturing firms, particularly applied steel product manufacturing companies engaged in manufacturing for the zinc or steel industry utilizing CRC (Cold Rolled Coil) in two countries in the ASEAN region: Thailand and Indonesia. The sample companies in this study are companies producing applied steel products sized 020 x 914 x C (H) and 020 x 762 x C (H) in greater Jakarta (Jakarta, Bekasi and Tangerang) industrial area in Indonesia and Bangkok, Thailand. The expected outcome of this study is that the determination of raw material control policies under the EOQ (Economic Order Quantity) approach is more optimal and efficient than the determination of raw material control using conventional methods. This study is using order quantity that includes the digital price setting to analyze the raw materials purchasing. It figures out how many orders are cost-effective for each order with a set frequency and when to reorder to minimize total inventory cost. Thus, inventory efficiency runs well and an optimal number of ordering units can be achieved by keeping costs to a minimum. The results elucidate that, at a certain point, although the cost of salary is more expensive in Thailand, nonetheless, the industry could maintain the cheaper price because of the efficient way of reducing the cost of the order and balancing the stock of orders and utilization.