Raw Material Inventory System Using Multi-Item Single Supplier in a Furniture Company

Abstract

Inefficient management of raw material inventory can lead to high storage costs or stock shortages that hinder production. This study was conducted at Techno Art, a company that manufactures portable fitting rooms with raw materials supplied by a single supplier. The current ordering system is carried out separately for each item without a scheduled plan, resulting in a high frequency of orders and increased operational costs. This research designs a multi-item inventory system using the Joint Replenishment method with a model P approach to determine the basic ordering interval and the interval for each item in order to minimize inventory costs. The implementation of this method has proven to reduce costs, decrease ordering frequency, and maintain the availability of raw materials in accordance with production requirements.