Design analysis of raw materials inventory on TC1118 cloth products with JIT approach

Abstract

Control of inventory of raw materials becomes an important part of the manufacturing process. By controlling good raw materials will reduce storage costs in warehouses, increase productivity and profits of the company. In this paper use quantitative methods that will result in the calculation of the most efficient order quantity to increase the productivity. Based on the just-time approach, control of raw material inventory is done by planning the purchase of raw materials by using the right delivery system so as to produce short delivery time. By ordering one day and added with proper inventory calculation will result in a reorder point in accordance with the company’s production capacity and able to reduce the storage of raw materials in the warehouse. The impact of the implementation of just in time, storage of raw materials in the warehouse becomes less and reduce inventory cost by 9.4%, so as to generate greater profit the company and can make savings of Rp7.581.515.237.