Raw Material Inventory Management Research Articles

Development of IoT Kaizen System for Smart Lean Raw Material Inventory Management: A case study at an SME factory in Malaysia

Effective Raw Material Inventory Management is crucial for overall company performance, demanding significant improvements. In the current technologically advanced landscape, the imperative adoption of the Internet of Things (IoT) is crucial for propelling inventory management forward and amplifying the visibility of raw materials. This case study is dedicated to developing an IoT Kaizen System, meticulously aligned with the Smart Lean Factory Inventory Control Framework, tailored to enhance Raw Material Inventory Management within an SME factory in Seremban, Negeri Sembilan. With a focal point on Loft Layer materials, the study encompasses Raw Material Ordering, Receiving, and Charging Out Log operations. Leveraging web-based tools such as Google Sheets, AppSheet, and Looker Studio, the system adeptly digitizes manual processes, tracking real-time data and integrating data visualization tools for informed decision-making. Implemented within a genuine industrial context, the project is intricately tailored to meet the unique preferences and requirements of the company, ensuring a customized solution that aligns with industry standards and reflects specific operational nuances. The resulting digital system introduces a structured, simplified, and efficient approach to Raw Material Inventory Management, injecting enhanced operational control and adaptability into the company’s workflow. Through the system implementation, warehouse space was reduced by 15%, order processing was done fully digitally that achieve zero case of ordering error and achieved zero case of material stock out. This system can adjust to what’s needed in modern manufacturing. It proves that using innovation and technology can make a business better by making things run more smoothly and helping with decision-making.

EOQ Optimization Revolutionizes Inventory Management, Delivering Cost Savings Globally

Efficient inventory management is crucial for companies to minimize costs while ensuring adequate supply to meet demand. PT Samawa Tirta Alam, a bottled sweet drinking water company, faces significant inventory management issues, notably with refined sugar raw materials. High transportation costs and fluctuating demand contribute to excessive inventory accumulation and increased storage costs, necessitating an optimization strategy. This study implements the Economic Order Quantity (EOQ) method to address these challenges. Through a mixed-method approach, qualitative data were gathered via observations and interviews, while quantitative analysis utilized historical data to calculate optimal order quantities, frequencies, safety stock levels, and reorder points. Results demonstrate substantial cost savings, with optimal order quantities determined, reducing order frequencies from 12 to 2 times per year, and minimizing safety stock levels. The findings underscore the effectiveness of the EOQ method in enhancing cost-effectiveness and operational performance in raw material inventory management for similar companies. Highlights: 1. Cost Efficiency: EOQ method reduces total inventory costs effectively.2. Operational Precision: Minimizing safety stock enhances operational efficiency.3. Strategic Insight: Integrated approach provides practical solutions for inventory management challenges. Keywords: Inventory Management, Economic Order Quantity (EOQ), Cost Optimization, Raw Materials, Transportation Costs

The Effect of Operational Audit and Internal Control on Raw Material Inventory Management

Economic developments in this era are in line with world developments which give rise to competition between companies and require company management to make the best decisions. The aim of this research is to analyze how much influence operational audits and internal control have on raw material inventory management. In this research, a quantitative method was applied where data was collected using a questionnaire, which was then processed using the SPSS data analysis tool. The research target was employees who worked at the house property company at PT Baritana Indah Persada Medan, with a total sample of 60 respondents. The data analysis methods applied in this research include descriptive statistics, classical assumption analysis, multiple linear regression, classical assumption analysis, hypothesis testing and coefficient of determination. The findings of this research reveal that there is a significant relationship between raw material inventory management and operational audits and internal controls to smooth the company's operations well.

Pemanfaatan Data Transaksi Untuk Mewujudkan Kepuasan Pelanggan, Brand Awareness Dan Loyalitas Pelanggan

Business development and growth is the ultimate target of establishing a company. Apart from being sales data, transaction data can also be a company asset that can be used for operational management and marketing strategies. For operational purposes, transaction data that reflects customer capabilities and conditions can be used for inventory management purposes by predicting the need for raw materials to guarantee the availability of products or services within a certain period of time according to customer needs. Companies can also develop products according to customer needs and minimize unnecessary expenses resulting from excessive procurement of raw materials. For marketing purposes, transaction data can be a reference for determining demographic customer characteristics. Customer characteristics can be used as a tool to determine current customer segments and how to provide maximum service to customers. The overall condition of customers will be valuable information for companies in carrying out marketing strategies. This research will explain how to utilize sales transaction data during a certain period using qualitative methods to achieve customer satisfaction through good raw material inventory management and appropriate product and service development, creating brand awareness (customer awareness of the brand) through digital marketing (digital marketing) and customer loyalty through customer relationship management strategies in the Exist Autodetailing Yogyakarta vehicle body maintenance business.

Tinjauan Atas Prosedur Pengelolaan Persediaan Bahan Baku Pada CV IDS

Inventory management is goods or materials stored in a company that are related to the production process or provision of services, as spare parts or goods that are resold. Inventory can include service costs such as wages and other HR costs directly involved in providing services as well as indirect production allocations. Raw material inventory is the amount of goods or materials available in a company or organization as input in the production or operational process. The purpose of preparing this Final Assignment is to review raw material inventory management procedures consisting of receiving, storing and dispensing raw material activities implemented by CV IDS. The results of this review show that the raw material inventory management procedures at CV IDS have been implemented well. In the procedure for receiving raw materials, the company requires purchase order (PO) and receipt report (RR) documents. And for raw material disbursement procedures, companies need a raw material disbursement book that is separate from the raw material receipt book. Keywords: raw material inventory, raw material receiving, raw material storage, raw material dispensing.

Application of the inventory theory in the company Kjantu Collection S.A.C.

The present research work shows an application of a mathematical algorithm based on a linear programming model, with which a solution is given to the raw material inventory management problem presented by the company «Kjantu Collection» in its warehouses, in the It is not known how much should be invested in a given period or how much the total merchandise is valued. The objective of the research is to apply a raw material inventory control model using linear programming that contributes to decision making within the company Kjantu Collection S.A.C using the WinQSB software. In support of the solution of the model, the WinQSB software is used, whose results managed to obtain the optimal quantities for the company Kjantu Collection S.A.C with which the downtimes in the production of the different garments of the company will be eliminated, it was also possible to determine the costs per period in the production of each garment.

Investigation about Inventory Management Model for Raw Materials in Steel Industry

With the continuous development of the economy, the steel industry, as one of the important components of the national economy faces lots of challenges. Effective inventory management for firms can not only achieve the optimal state of inventory cost benefit but also improve the efficiency of capital use, which can also improve the efficiency of the firm’s operational management. It is of great significance to enhance the market competitiveness of enterprises. This article examines raw material inventory management in steel companies. As the world's second-largest steel producer, Japan's high dependence on imported raw materials makes it a typical example of how Japanese steel companies manage their inventory levels. This paper focuses on Kosuke Kawakami's model of a non-flush gamma process for Nippon Steel Corporation, which has been effective in reducing inventory levels in practice. The paper then suggests ways of optimizing the model in light of new research in inventory management in recent years.

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

The influence of raw material inventory management and machine maintenance on the production process

The influence of raw material inventory management and machine maintenance on the production process

ANALISIS SISTEM AGROINDUSTRI TEH GAHARU (AQUILARIA MALACCENCIS L.) (STUDI KASUS CV BUMI HARUM DI KABUPATEN OGAN KOMERING ULU TIMUR)

The study aims to analyze raw material inventory management of agarwood tea, profits of agarwood tea, and the product distribution pattern in CV Bumi Harum, East Ogan Komering Ulu Regency, South Sumatra. The research method used is a case study by determining the location of the research purposively (deliberately). Data collection was by means of question and answer session using a questionnaire and observation carried out in December 2021 - January 2022. The analytical methods used were quantitative descriptive analysis (EOQ and profit analysis) and qualitative descriptive analysis (distribution patterns of agarwood tea). The results of this study are the optimal amount of stock of agarwood leaves based on the EOQ method is 155 kg per order with a frequency of 24 orders per year. The profit obtained by the agarwood tea CV Bumi Harum agroindustry per production is IDR2,279,629.12 with a product selling price of IDR10,000.00 per box. The pattern or distribution channel for agarwood tea at CV Bumi Harum consists of two channels, namely from CV Bumi Harum to consumers and from CV Bumi Harum to retailer and then to consumers. Keywords: agarwood tea, agroindustry, EOQ, profit

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.

MANAJEMEN PERSEDIAAN BAHAN BAKU BAWANG PUTIH GORENG PADA UKM SOFIE LOCALFOOD DI KOTA PALU

Garlic Sofie Localfood is one of the businesses engaged in agro-industry that utilizes garlic as the main raw material. Sofie Localfood's fried garlic products still have difficulty in regulating the production process, due to delays in ordering raw materials, so SMEs buy raw materials elsewhere and require more costs and sometimes the raw materials are not as expected. Raw materials are one of the most important production factors because they support the smooth running of the production process. This study aims to find out how much economic raw material purchases (EOQ) for the supply of raw materials to SMEs Sofie Localfood, to find out how much safety stock (Safety Stock) to SMEs Sofie Localfood, to find out when is the right time for SMEs Sofie Localfood to do reordering (ROP) of raw material inventory, and to find out the total inventory cost (TIC) of raw materials at UKM Sofie Localfood, This research was conducted at UKM Sofie Localfood on Jalan Zebra IV, Lorong 1 No. 5 Palu City. The selection of this location was done purposively, with the consideration that Sofie Localfood is one of the businesses that produces garlic as the main raw material for making tempeh in Palu City. This research was conducted from April to June 2021. Respondents are owners and employees of UKM Sofie Localfood who were selected as sources of information in the study, the total number of respondents is 3 people. Based on data to be obtained from Sofie Localfood's business regarding raw material inventory management issues tempe, the data analysis used is Economic Order Quantity (EOQ), Safety Stock (Safety Stock), reorder (ROP) and total inventory cost (TIC). The results of this study indicate that the management of raw material inventory at SMEs Sofie localfood using the (Economic Order Quantity) method in JanuaryDecember 2020 an average of 31.17 kg/month. Safety stock (Safety Stock) of raw materials that is always available at UKM Sofie Localfood is 14.92 kg/month. The reorder point (reorder point) that SMEs Sofie Localfood must make in April-June 2021 is an average of 77.26 kg/month. The total cost of raw material inventory for garlic in the UKM Sofie Localfood is an average of Rp.58.157.86/month.

Optimization of material and technical supply management of industrial enterprises

Purpose. Development of an adaptive economic and mathematical model of raw material supply management for the production activities of industrial enterprises. Methodology. In the course of the study, the following methods of understanding economic phenomena and processes were used to solve the problems posed in the work: system analysis, economic and mathematical modeling, abstract-logical and graphical methods. Findings. The work identifies specific characteristics of the organization of supply of raw materials, equipment, inventory and finished products to industrial enterprises. An adaptive economic and mathematical model of optimization of material and technical supply of these enterprises is formulated. The proposed model simplifies the choice of raw material inventory management system depending on the specifics of the production process of a particular enterprise and the external conditions of its operation. The use of adaptive model is necessary in the formation of supply and demand change programs in the markets of finished products, monitoring the movement of own funds in the organization of transportation of raw materials from suppliers and redistribution of available financial resources to address the priorities of business entities. Originality. The authors propose an adaptive economic and mathematical model for optimizing material and technical supply, which takes into account the possibility of violation of the delivery time of inventory items under the influence of force majeure, and also determines the optimal amount of raw materials for supply under certain operating conditions of a particular industrial enterprise. Practical value. The use of the economic and mathematical model formed by the authors in the economic activity of industrial enterprises will allow the latter to timely forecast and plan their logistics costs and, as a consequence, avoid irrational spending of available financial resources.

SUSTAINABLE VALUE CHAIN STRATEGY FOR TOFU SMEs

Globalization, free trade, and the current pandemic can be both a challenge and an opportunity for SMEs in Indonesia. One of the opportunities that arise from this phenomenon is the expansion of supply and demand networks. One of the SMEs in the food sector affected by the pandemic is the Tofu SME. Currently, only about 36% of tofu SMEs still survive in carrying out the production process. Most of the SMEs have problems in raw material inventory management, they do not yet have a standard warehouse. This problem minimizes their production capacity. Besides that, Tofu SMEs are still difficult to develop and sustain in the new normal era. For this reason, research on increasing the sustainability of SMEs needs to be carried out. The value chain analysis approach is used in the study to map the operational processes of SMEs and to identify activities and problems that make an important contribution to increasing the value of the SME business processes. K-means clustering method is used to group value chain levels. The Analytical Hierarchy Process (AHP) method is then used to choose a level-up strategy. Cluster 1 has the most members, which is 62 SMEs. Cluster 2 has the smallest member of 1 SME while cluster 3 has 9 SME members. The value coalition strategy is a recommended strategy to be applied to cluster 1 SME groups.

ANALISIS PENGENDALIAN PERSEDIAAN BAHAN BAKU DI UKM BATIK SEKAR JATI STAR DENGAN MENGGUNAKAN METODE ABC ANALYSIS DAN ECONOMIC ORDER QUANTITY (EOQ)

SMEs of Batik "Sekar Jati Star" is one of the manufacturing industries engaged in batik making located in Jatipelem Village, Jombang and established since 1999. One of the typical motifs in ukm is jombangan motif that depicts the icon of Jombang city. The problem is management of raw material supplies is not optimal, where so far there is no evaluation and no inventory model method is used. So that the article aims to control the inventory of batik raw materials which include fabric, dye and wax. This inventory control includes the classification of each raw material for making batik using the ABC Analysis method. Next, determine the amount of economical raw material inventory using the Economic Order Quantity (EOQ) method. The results showed that the classification of raw materials using the ABC analysis method shows that the raw materials included in category A are fabric raw materials, category B is dye raw materials, and category C is wax raw materials. Implementation of the results of the classification of raw materials, so that the main priority of control is carried out according to the order of categories. The results of the EOQ inventory model show the monitoring of inventory control of raw materials for fabrics, dyes, wax for a year. Monitoring includes the time and quantity of economic Q, RoP, frequency of purchases, average inventory per week. Furthermore, from the comparison of inventory costs, the results of the EOQ model provide more economical results compared to the raw material inventory management that has been carried out so far for fabrics, dyes and waxes.

Analysis of the application of the raw material inventory management system at PT. Inkomas Lestari to suppress the inventory cost by using the economic order quantity (EOQ) method

This Research was conducted with the aim of reducing inventory costs by calculating the safety stock needed by companies using the Economic Order Quantity (EOQ) method. Based on the calculation results, it is known that PT. Inkomas Lestari with the EOQ method obtained a total inventory costs of Rp.1.888.637.963 which is lower than the company using conventional methods which have to pay a fee of Rp. 2.112.320.822, then the difference in total inventory cost is Rp. 223.682.857. This means that the Economic Order Quantity (EOQ) method can be considered more efficient compared to the conventional method currently being applied by the company

PENGARUH PENGELOLAAN PERSEDIAAN BAHAN BAKU TERHADAP EFISIENSI BIAYA PERSEDIAAN DI PT HARMONI MAKMUR SEJAHTERA

The purpose of this study is to determine how much the influence of raw material inventory management to the inventory cost efficiency at PT Harmoni Makmur Sejahtera. This study uses quantity research methods by giving questionnaires to 30 respondents, the calculation and data analysis conducted by using SPSS version 25. From the data proccessing, it was found a correlation value of 0.671, thus it can be concluded that there is a strong correlation between the variables of raw material stock management (X) on the efficiency of inventory costs (Y). Result of R square (R2) value of 0.451 or in the amount of 45.1%, therefore it can be said that the raw material inventory control variable has an effect of 45.1% on inventory cost management. The test results show that the t count is 4.793. The t table value, which is the standard, obtained the t table value at a significance level of 0.05, which is 2.480. The analysis results show the value of t count> t table (4.793> 2.480). This means that Ho is rejected and H1 is accepted, or there is a positive and significant influence between Raw Material Inventory Management on Inventory Efficiency.

THE ANALYSIS OF RAW MATERIAL INVENTORY OF DOHO SUWAR-SUWIR BUSINESS IN JEMBER REGENCY

Doho Suwar-Suwir is a Micro Small Medium Enterprises (UMKM) processing Fermented Cassava (Tape Singkong) to become a processed food in Jember, which is Suwar-Suwir. To maintain the stability of production process, needs a control for the stock management towards the raw material at Doho Suwar-Suwir UMKM. The raw material inventory management at Doho Suwar-Suwir UMKM is about fermented cassava raw material inventory which then are processed to become the typical food of Jember Regency, which is Suwar-Suwir. The goal of this research were to analyze the fermented cassava raw material inventory quantity and to analyze the safety stock quantity at Doho Suwar-Suwir UMKM. The method used in this research was stock management calculation or Economical Order Quantity (EOQ) where the result of this research was the quantity of fermented cassava raw material needed using Economical Order Quantity (EOQ) method at Doho Suwar-Suwir business was 60,6 kg and the number of the safety stock which must exist was 5,5 kg.

Study of optimal order policy for a multi-period multi-raw material inventory management problem under carbon emission constraint

In recent years, the carbon emission problem involved in various industries has attracted more and more attention from scholars, among which many scholars have incorporated the carbon emission problem into the inventory control process of the manufacturing industry. Motivated by this fact, assuming carbon cost is only incurred during the transportation, we develop a multi-period, multi-item periodic-review dynamic programming model to address the raw-material inventory management problem in a foundry enterprise. This model enables us to further compare two production strategies (strategy α and strategy β). The former represents the strategy to scale down the original consumption rate of raw materials in an equal proportion on the premise of maximizing meeting the carbon emission limit, and the latter represents the strategy to keep the original raw material consumption rate constant in early stage, but are taken to stop production when the carbon emissions are saturated. Due to the complexity of the proposed problem, we propose a mathematic algorithm based on Probabilistic Dynamic Programming (PDP) to derive the structural properties of the model. Groups of comparison of the expected total cost under different strategies lead to the observation that production strategy α generally performs better than production strategy β. Intriguingly, the sum of the initial inventory level and the optimal order quantity is approximately constant in one period. This phenomenon lasts for different periods under the same production strategy.

MANAJEMEN PERSEDIAAN BAHAN BAKU BERBASIS PADA PT. TUFFINDO NITTOKU AUTONEUM KARAWANG

In the current era of globalization, information technology is advancing rapidly. The computer which is equipment that was created to facilitate human work, when achieving progress both in making hardware and software. PT. Tuffindo Nittoku Autoneum is in need of an information system that supports and provides fast and precise access to its business activities. For this reason the author tries to make a Raw Material Inventory System which until now has not been computerized. At this time PT. Tuffindo Nittoku Autoneum has been well developed for the information system used, only for some parts such as the warehouse, the existing system at PT. Tuffindo Nittoku Autoneum is still done manually, starting from recording the receipt of goods from suppliers, to storing other data relating to the inventory process to making reports, making it possible during the process of error occurred in recording, inaccurate reports made and delays in finding the necessary data. The design of this information system is the best solution to solve the problems that exist in this company, as well as with a computerized system can achieve an effective and efficient activity in supporting the activities of this company. A computerized system is better than a manual system to run more effectively and efficiently and the new raw material warehousing system is more conducive than the previous system. Keywords: System Design, Raw Material Inventory Management