Abstract

<p><em>Inventories of raw materials are the company's current assets used for production activities at the company. Companies need to do the inventory control because it affects the smooth production process. A shortage can lead to disruption of the production process. While excess inventory can lead to waste because companies need to spend more capital for inventory costs. The purpose of this study to determine whether the PT. Djitoe Indonesia Tobacco has made raw material inventory control appropriately. Raw material inventory control methods used in this study are a min-max stock. This method determines the amount of safety stock, minimum stock, maximum stock and order quantity. After doing research, PT. Djitoe Indonesia Tobacco excess raw material inventory. Total inventories are controlled using the min-max stock produces more efficient results when compared to the amount of the final inventory of the company. With min-max method the company is able to economize IDR 700,000 for each period.</em></p>

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