Raw Material Inventory Control Research Articles

Application of Raw Material Inventories Using the ABC Class Classification Method and the EOQ Method in Raw Material Inventories Based on POM QM For Windows

The quality of a product depends on how the manufacturer applies the supply of raw materials used. The application of a good supply of raw materials can expedite the production process. There are many factors that affect the smooth production process. One of the factors that can affect the smoothness of the production process is the supply of raw materials. Raw materials in the production process include raw materials, semi-finished materials and finished goods. In running its business, Kedai Surabi Gapura experiences difficulties in terms of implementing raw material supplies considering the large number of orders that the shop receives every month so that Kedai Surabi Gapura cannot determine the number of priority raw material needs that must be purchased according to production needs. Surabi Gapura requires an appropriate method of supplying raw materials for production. By applying the raw material inventory classification method, it is hoped that Kedai Surabi can find out the priority classification of raw materials used based on raw material prices, in this case related to capital. Shop owners need to implement raw material inventory planning and control because to find out what the difference is between the costs incurred for purchasing raw materials and the amount of raw material requirements according to the daily production target. In addition to the raw material inventory classification method needed in an effort to expedite the production process, the shop also needs to apply the right raw material ordering method in order to save costs incurred such as transportation costs for sending raw materials, raw material storage costs, ordering costs, raw material maintenance costs arising from inventory. By applying the EOQ method for reordering raw materials, it is hoped that the Surabi Gapura Shop will place orders in economical quantities to determine the point of reordering raw materials so that the costs incurred by the Surabi Gapura Shop are efficient.The research method used in this study is to use a quantitative descriptive method. In this study the method used aims to determine the appropriate method of inventory of production raw materials with the raw material inventory classification method and the correct raw material ordering method in order to save costs incurred such as transportation costs for sending raw materials, raw material storage costs, ordering costs, maintenance costs for raw materials arising from inventory. By applying the EOQ method for reordering raw materials.From the results of calculations using the POM QM For Windows software based on the results of data processing using the ABC class classification analysis method for raw materials from 15 types of raw materials, they can be classified based on their respective classes according to the amount and investment value or rupiah spent to obtain these raw materials. Then by using the calculation of the EOQ method with the POM QM For Windows software, business owners can find out the optimal number of orders in the production process, namely the optimal number of orders is at 8,869.52 units, that is, if the demand in one day is 250 units.

Economic Order Quantity (EOQ) Application to Raw Material Inventory Control for SME's

The application of the Economic Order Quantity (EOQ) method in managing raw material supplies for Pempek Isti, a micro, small, and medium enterprise (MSME) specializing in Palembang's culinary specialty, Pempek. The study reveals that the current raw material supply management is inefficient, leading to frequent shortages or excess orders, resulting in additional costs and inefficiencies. To tackle this issue, the study proposes the implementation of the EOQ analysis to minimize inventory costs and maximize profits. The research focuses on determining the optimal order quantities for three key raw materials: ikan tenggiri, sago flour, and eggs. After conducting the EOQ analysis, the study identifies the optimal order quantities as 37kg for mackerel fish, 44kg for sago flour, and 7kg for eggs. Furthermore, the study calculates the reorder points for each raw material based on the EOQ method, resulting in 8.36kg for mackerel fish, 8.19kg for sago flour, and 3.23kg for eggs. By implementing the EOQ method, Pempek Isti MSME can accurately estimate the required quantities of raw materials for Pempek production throughout the year. The calculations consider safety stock and lead time, enabling the determination of reorder points and maximum order quantities for each raw material. This information serves as a valuable reference for effectively managing the MSME's raw material supply chain. Overall, the application of the EOQ method is crucial in ensuring an efficient supply chain for Pempek Isti MSME. By implementing proper planning, control, and supervision of raw materials, the company can minimize costs, prevent stockouts, and avoid excessive inventory. This study provides valuable insights into optimizing inventory management, particularly in the context of MSMEs operating in the culinary industry.

The The Effect of Internal Control of Raw Material Inventory and Production Process Planning on the Smooth Production Process

The The Effect of Internal Control of Raw Material Inventory and Production Process Planning on the Smooth Production Process

Analysis of Raw Material Inventory Control using the ABC Analysis Method and EOQ Method in the Fajar Onion Crackers Business

Inventory control is one aspect that affect the company's smooth operation. In this study, the Activity Based Costing (ABC) analysis method and the Economic Order Quantity (EOQ) method are applied to control raw material inventory. The Bawang Fajar cracker business is one of the SMEs whose raw material inventory control has yet to use the ABC analysis method and the EOQ method. This research is applied research. Based on the results of this study, it was found that the grouping of raw material inventories according to ABC analysis was divided into three groups, namely group A; wheat flour and cooking oil, group B; eggs, and group C; onion and garlic. The TIC value based on the EOQ method is Rp. 1,749,102.00, while the TIC value based on the method used by the company is Rp. 3,582,200.00. So that the EOQ method is more effective than the method used by the company in the Fajar Bawang Crackers Business.

Implementation of the Just In Time Method to Efficient Production Costs (Literature Review Study)

In production activities, the problem of inventory is one thing that must be considered in order to avoid waste in the production process. This study shows the control of raw material inventory in a production to get the optimal level of inventory. The just in time (JIT) method reduces the amount of inventory so that it can reduce costs as efficiently as possible. Inventory control with the just in time (JIT) method is the development of the economic order quantity (EOQ) method by reducing shipping lots. Based on this research, it is known that with the same data, using just in time (JIT) the costs incurred are smaller than the costs incurred previously. Costs previously incurred were Rp. 14,019,680.00 using economic order quantity (EOQ) the costs incurred were Rp. 8,497,593,00 while using just in time (JIT) the costs incurred were Rp. 3,800,239, 00 From these results it can be seen that with the just in time (JIT) method the production costs incurred are more efficient. The solution using the just in time (JIT) method is done with the help of MATLAB software.

Analysis of EOQ (Economic Order Quantity) as a Basis for Controlling Multi Item Raw Materials at Laatunsa Bakery Tasikmalaya

The goals of this study were to analyze the most cost-effective requirements for the primary raw materials based on the requirements of Laatunsa Bakery for the 2020–2021 period, due to the excessive frequency of raw material acquisitions, the inventory procedure results in a high cost expenditure; to examine the total cost of the primary raw material inventory that must be paid by Laatunsa Bakery for the 2020–2021 period, to analyse the frequency of purchases that are necessary; to analyze the quantity of safety stock (safety stock); to analyze the timing of reordering (reorder point), and to analyze the Laatunsa Bakery's primary raw material inventory control utilizing the EOQ method. Data gathering was place between November 2021 and February 2022. All information pertaining to the acquisition of the primary raw material inventory required for production, as well as the associated expenses of raw material inventory was utilized. This study adopted Economic Order Quantity as the analytical technique approach.
 The study's findings utilizing the EOQ approach revealed that the inventory of raw wheat cost Rp. 585,581.45, a savings of Rp. 2,613,934.94. Additionally, saving Rp 2,559,472.21 on sugar raw materials costing Rp 585,582.23 is possible. Additionally, the cost of the raw ingredient for butter is Rp. 585,582.23, saving Rp. 2,559,472.21. Additionally, the cost of the raw material for eggs is Rp 952,399.69, saving Rp 3,355,584.19. Additionally, the developer can save IDR 1,132,400.99 on the IDR 590,582.81 in raw materials.When compared to conventional method, the EOQ method can reduce inventory costs and optimize the need for raw materials. The EOQ approach is utilized using Microsoft Excel for the calculation.

Analysis of Raw Materials Inventory Control Using Economic Order Quantity (EOQ) (Case Study of Synthetic Leather Raw Materials at Borselly)

The purpose of this study was to find out how the implementation of synthetic leather raw material inventory control has been carried out by Borselly, whether applying the EOQ method in controlling raw material inventory at Borselly is more optimal than without using the EOQ method. The method used in this research is a descriptive method with a quantitative approach with technical data collection through interviews, observation, literature study, and documentation. The data analysis tool used in this study is by using the Economic Order Quantity (EOQ) such as purchase frequency, safety stock, reorder point (ROP), and total inventory cost (TIC). Based on the research results, it is known that applying the EOQ method calculation has an effect on the company being better, the company can also make inventory costs more efficient and optimize inventory compared to policies using conventional methods

The Capacity Efficiency Of Production Machinery And Raw Material Supply Control : Production Process In "Galvanized Steel" Company, Bekasi City

To produce a product that is of good quality with a smooth production process, it is necessary to establish a system of Machine Efficiency Capacity and Raw Material Supplies appropriately, this is intended to make it easier for companies to meet the required quantity of production and efficiency efficiently and certainly affect the smooth production. The purpose of this research is to find out and analyze the Effect of Capacity of Machine Efficiency in Production and Inventory Control of Raw Materials on the Smooth Production Process in Bekasi Branch "Galvanized Steel" Company. The type of research used is observation with a multiple linear regression analysis model with 32 samples. The regression test results show that 58.5%, the smoothness of the production process can be explained by the capacity of machine efficiency, and control of inventory of raw materials, while the remaining 41.5% is explained by other factors not examined in this study. F test results show that simultaneously the efficiency of production machinery and raw material inventory control have a significant effect on the smooth production process. The results of the t test show partially the capacity of machine efficiency has a significant effect on the smoothness of the production process while the control variables for raw material inventory have no significant effect on the smooth production process in the branch company "GALVANIZED STEEL" Bekasi

The Capacity Efficiency Of Production Machinery And Raw Material Supply Control : Production Process In "Galvanized Steel" Company, Bekasi City

To produce a product that is of good quality with a smooth production process, it is necessary to establish a system of Machine Efficiency Capacity and Raw Material Supplies appropriately, this is intended to make it easier for companies to meet the required quantity of production and efficiency efficiently and certainly affect the smooth production. The purpose of this research is to find out and analyze the Effect of Capacity of Machine Efficiency in Production and Inventory Control of Raw Materials on the Smooth Production Process in Bekasi Branch "Galvanized Steel" Company. The type of research used is observation with a multiple linear regression analysis model with 32 samples. The regression test results show that 58.5%, the smoothness of the production process can be explained by the capacity of machine efficiency, and control of inventory of raw materials, while the remaining 41.5% is explained by other factors not examined in this study. F test results show that simultaneously the efficiency of production machinery and raw material inventory control have a significant effect on the smooth production process. The results of the t test show partially the capacity of machine efficiency has a significant effect on the smoothness of the production process while the control variables for raw material inventory have no significant effect on the smooth production process in the branch company "GALVANIZED STEEL" Bekasi

Analysis of Coffee Raw Material Inventory Control Using the EOQ (Economic Order Quantity) Method in SME Sido Luhur

SME Sido Luhur is a producer that processes raw coffee beans who have problems ordering coffee beans every month which is considered to result in higher inventory costs. The sample in this study were SME Sido Luhur owner who were determined based on judgment sampling. The research was conducted at SME Sido Luhur starting September 2022. This research used primary data obtained through interviews and secondary data obtained from the cost and quantity of raw materials in 2018. Data for 2018 can represent 2019, 2020, 2021, 2022, and so on, because starting in 2017 SME Sido Luhur have entmered the maturity phase so the 2018 data can represent the following year based on the relatively stable use of raw materials and having entered the business maturity phase. The analysis method uses EOQ to find the optimum inventory quantity with the lowest possible cost and the right reorder time. A comparison of robusta coffee bean inventory control methods shows that the Economic Order Quantity method is more effective in controlling raw material inventory in SME Sido Luhur as evidenced by the cost of raw material inventory being economical and efficient. After using the EOQ method, orders are made every 2 months to save costs for ordering raw materials compared to before using the EOQ method, which is done every month.

Analysis Of Raw Material Inventory Control In Nelongso Fried Chicken

This study aims to determine the Inventory Control of Raw Materials in Ayam Goreng Nelongso. This study attempts to explain the suitability of the internal control of raw material supply between Ayam Goreng Nelongso and COSO, especially in the control environment, risk assessment, information and communication, control activities and control oversight. Based on the results of the analysis, it is known that raw material inventory control in Ayam Goreng Nelongso based on COSO principles is practically appropriate, but in practice it is not in accordance with the Standard Operating Procedure (SOP) for Ayam Goreng Nelongso. The above statement causes the demand for goods to be less fulfilled which results in the demand for goods not meeting the required stock, therefore it will result in the course of production and sales. In its presentation, Ayam Goreng Nelongso is in accordance with COSO principles.

Analisis Pengendalian Persediaan Bahan Baku Pada CV. Yan Utama

Abstract Control over the supply of raw materials is a must for every company that aims to avoid misuse in the form of fraud or waste, because in the business world problems often occur in carrying out production. The purpose of this study are as follows (1) to determine the raw material inventory control applied to CV. Yan Utama Corporation, (2) to determine the number of orders for CV raw material supplies. Yan Utama Corporation on economical order quantities. This research is a qualitative descriptive research, the location of this research is at CV. Main Yan Company Sidobakti street, Paregi Purwodadi Village. This research technique by way of observation, interviews, and documentation. Data analysis was carried out using a tabular approach and a formula approach. The result of this research is CV. Yan Utama controls the supply of pure chemical raw materials using the EOQ method. The number of orders for raw material inventory CV. Yan Utama on the EOQ is 2,936 kg of raw materials which can be ordered every time an order is placed. The frequency of purchasing raw materials in CV. Yan Utama when using the EOQ method which should or is more efficient is 7 times the purchase of raw materials in one period (1 year), while new orders are made by CV. Main Yan is 24 times a year. So that with this evaluation, the time to order raw materials can be more considered with an interval of every 51 days when ordering pure chemical raw materials. Keywords: Inventory Control, Inventory Orders, Raw Materials.

PENGENDALIAN PERSEDIAAN BAHAN BAKU BROWNIES DENGAN ANALISIS PERBANDINGAN METODE MIN-MAX, ECONOMIC ORDER QUANTITY DAN PERIOD ORDER QUANTITY

This research examines raw material inventory control at Hendhy's Brownies. Inventory management analysis is carried out using the Min-Max, Economic Order Quantity (EOQ) and Period Order Quantity (POQ) methods. Based on data analysis and processing, it is known that raw material inventory management using the min-max method has an order quantity of 13,231 kg with an ordering frequency of 5 times and a total ordering cost of Rp. 5,325,387. By using the Economic Order Quantity (EOQ) method, an order quantity of 9001 kg was obtained with an order frequency of 5.3 times and a total order cost of Rp. 3,420,527 Using the Periodic Order Quantity (POQ) method, the order quantity is 4252 kg, the order frequency is 20 times, and the total order price is IDR 3,071,030. Based on the results of the three methods, the EOQ method is the most optimal inventory control method compared to the other two methods. So that the results obtained through the EOQ method can improve forecasting of raw material shortages for companies, so that the use of raw materials becomes optimal

ANALISIS PERBANDINGAN PENERAPAN PENGENDALIAN BAHAN BAKU POLYPROPYLENE DAN LOW DENSITY POLYETHYLENE MENGUNAKAN MODEL EOQ DAN JIT/EOQ UNTUK MENGETAHUI TINGKAT PERSEDIAAN YANG EFEKTIF PADA PT XYZ

So far, inventory control for PP and LDPE products Supprise Kapsul at PT XYZ has been carried out with the assumption that practitioners are not academics, with an average approach of the last three months. For this reason, the researchers implemented raw material inventory control using the EOQ and JIT/EOQ methods. By using the evaluative research method, the research sample is in the form of operational control of raw materials, the type of data is in the form of documentation, the data source is primary data obtained through observation and interviews, and secondary data in the form of transaction evidence, notes, reports on raw material supplies. The results showed that the economic cost using the EOQ method was 18,603 Kg and the JIT/EOQ method was 55,330 Kg. With an average order for PP raw materials the EOQ method is 18 times and JIT/EOQ is 6 times. The average order for LDPE raw materials using the EOQ method is 11 times and JIT/EOQ is 6 times. The JIT/EOQ method is more economical than the EOQ method at a maximum capacity of 480 PP units and 60 LDPE units. Costs that can be saved in 1 year on PP materials are Rp. 175,068,594 and can save costs in 1 year for LDPE materials of Rp. 14,692,787 Keywords: EOQ, JIT, Inventory control

Implementation of Raw Material Inventory Control System to Increase Sales of Hand Batik

This study aims to explain about how to control the supply of raw materials in the Batik Tulis Trading Business "Jetis Sidoarjo". The method used in the quantitative approach. The research approach in this thesis uses a quantitative research approach with a descriptive approach. In the object of this research, namely the implementation of a raw material inventory control system to improve the quality of batik production in Kampoeng Batik Tulis Jetis SMEs. The subjects in this research are the UMKM Kampoeng Batik Tulis Jetis, Lemahpuro Village, Sidoarjo District, Sidoarjo Regency, East Java. With descriptive research, the researcher only intends to describe (describe) or explain the symptoms that are currently happening. The results of this study can be concluded that using the calculation of safety stock and reordering is more effectively used in controlling raw material inventory when compared to current company policies. Companies can predict or avoid shortages or excess raw materials that can result in disruption of the production process by setting a safety stock calculation and also setting a re-order point, so the company can know or predict when to reorder and obtained with minimal inventory costs.

The effect of internal control of raw material inventory and production process planning towards the production process and business competitiveness in halal food based SMEs

The increasing variety of types of food circulating in Bekasi, has both positive and negative impacts at the same time. The positive impact is the increasing variety of food choices owned by Bekasi residents. In addition, the negative impact is that there is often no guarantee of halalness for the foods offered, both in terms of raw materials, processes and presentations. This study aims to determine the effect of internal control of raw materials and production planning on the smooth process of SMEs, especially based on halal food in Bekasi. The study involved 49 SME entrepreneurs in Bekasi and processed data using the multivariate statistical method and path analysis. The results show that in very specific cases, namely halal food products, internal control and production process planning had a positive influence on the smoothness of the production process and business competitiveness.

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU GUNA MEMINIMALKAN BIAYA PENYIMPANAN MENGGUNAKAN ECONOMIC ORDER QUANTITY (EOQ) DAN PERIODE ORDER QUANTITY (POQ) PADA UMKM PIGOPE

UMKM Pigope is one of the umkm in Yogyakarta with the main menu of fried bananas typical of Sulawesi served with roa and chili sauce. The main raw material for this fried banana is banana kepok. In the production process, umkm Pigope requires approximately 80 bunches of kepok bananas per month. The problem in this umkm is that there are obstacles in controlling raw materials which cause the production process to be disrupted due to damage to raw materials in storage, considering that the age of ripe bananas is not too long. From these problems, it is necessary to control raw materials in order to minimize storage costs. Based on the results of the analysis that has been carried out, it shows that the control of raw material inventory applied by UMKM Pigope is not optimal. Umkm have run out of inventory to meet consumer demand, but umkm have not been able to minimize inventory costs. The use of the Economic Order Quantity (EOQ) and Period Order Quantity (POQ) methods shows the number of economic orders as many as 48 bunches, with the purchase frequency of banana raw materials as many as 17 times the purchase of banana raw materials in one period (1 year), and the number of safety stock proposed as many as 15 bunches. With the proposed inventory control, UMKM Pigope can minimize the total inventory cost from Rp. 15,020,- to Rp. 14,195,584,-. When calculated using EOQ the company can save on inventory costs, the quantity and frequency of purchasing fewer main raw materials by taking into account safety stock and reorder points.

ANALYSIS AND DESIGN OF INVENTORY ACCOUNTING INFORMATION SYSTEM APPLICATIONS TO IMPROVE INTERNAL CONTROL IN MSMEs FILO CR MALANG

This study aims to analyze and design an inventory accounting information system application to improve internal control in MSMEs Filo CR. In addition, add a recording system or feature to help facilitate the raw material inventory control system and internal control. The type of research carried out is applied research using research and development (R&D). where applied research is conducted to apply the findings to solve problems. The research findings contribute to knowledge building in various functional areas of business. In addition, this research aims to develop and provide an output or product that can apply and benefits businesses in the coffee production MSME sector. This research is expected to provide a solution and contribute to the control of coffee raw material inventory by the criteria for the production and quality of accountable and transparent financial reports

Redesign and Improvement in the Management of the Raw Material Inventory Control Process with Oracle APEX

Redesign and Improvement in the Management of the Raw Material Inventory Control Process with Oracle APEX

Pengaruh Produktivitas Tenaga Kerja Dan Pengelolaan Persediaan Bahan Baku Terhadap Kinerja Operasional Perusahaan

The purpose of this study was to determine the effect of labor productivity and raw material inventory control on the Company's Operational Performance (Survey on small shoes and sandals industry in Mangkubumi District). The method used in this study is a quantitative method, with a research sample of 64 respondents who are the owner, the person in charge of production, the person in charge of raw materials and the quality control team. The analytical tool used in this research is multiple linear regression. The results showed that simultaneously Labor Productivity and Raw Material Inventory Management had a significant effect on the Company's Operational Performance. Partially, Labor Productivity has a positive and significant effect on the Company's Operational Performance. Partially Raw Material Inventory Management has a positive and significant effect on the Company's Operational Performance.