The Inventory Planning of Raw Materials for Furniture Products (Case Study: CV XYZ Furniture)

Feby Gusti Dendra; Elita Amrina; Febriza Imansuri; Hikari Qurrata’ain Nurhadi

doi:10.52330/jtm.v22i2.276

Authors

Feby Gusti Dendra Politeknik STMI Jakarta
Elita Amrina Universitas Andalas
Febriza Imansuri Politeknik STMI Jakarta
Hikari Qurrata’ain Nurhadi Politeknik STMI Jakarta

DOI:

https://doi.org/10.52330/jtm.v22i2.276

Keywords:

continuous review system, inventory costs, furniture, inventory planning, raw material inventory

Abstract

The burgeoning industrial sector in Indonesia has intensified competition among businesses vying for market share. The furniture industry is a prime example of this dynamic landscape. To expand their market reach, companies must demonstrate their ability to fulfill every consumer demand. Failure to meet these expectations will prompt consumers to seek alternatives. One crucial factor in meeting consumer demands is product availability, which is directly influenced by the availability of raw materials within the company. CV XYZ Furniture, a furniture company based in Padang City, exemplifies this challenge. The company produces a diverse range of furniture, primarily utilizing rattan as its raw material. However, CV XYZ Furniture currently lacks a structured inventory planning method for raw materials, resulting in excess inventory for each period. To address this issue, this research aims to establish an optimized inventory planning strategy for raw materials used in furniture production at CV XYZ Furniture. The continuous review system method serves as the foundation for this endeavor. The research outcomes encompass the determination of optimal demand quantity, reorder point, and safety stock. The implementation of the continuous review system model yielded a significant reduction in total inventory costs, amounting to Rp8,625,594 or 2.03%. It can be proven that the continuous review system model is suitable for calculating raw material inventory at CV XYZ Furniture for raw material planning in the following years.

References

Bahagia, S. N. (2006). Sistem Inventori (Bandung. Bandung: Penerbit ITB, 3.

Czerniachowska, K., Hernes, M., & Subbotin, S. (2023). Assortment ABC classification problem at the warehouse modelled as a multi-knapsack. Scientific Papers of Silesian University of Technology Organization and Management Series, 2023(172). https://doi.org/10.29119/1641-3466.2023.172.7

Dendra, F. G., Amrina, E., & Indrapriyatna, A. S. (2023). Inventory Control Model of Beef for Rendang Products. Jurnal Optimasi Sistem Industri, 22(1), 22–30. https://doi.org/10.25077/josi.v22.n1.p22-30.2023

Einjelica By, S., & Yamit, Z. (2022). Planning of Soybean Raw Material Inventory Control Using Economic Order Quantity (EOQ) Method, in Corina Factory Kudus, Central Java. Management Analysis Journal, 11(2), 167–173. https://journal.unnes.ac.id/sju/index.php/maj/article/view/55876

Fithri, P., Hasan, A., & Asri, F. M. (2019). Analysis of inventory control by using economic order quantity model–A case study in PT semen padang. Jurnal Optimasi Sistem Industri, 18(2), 116–124.

Kurniawan, S., Saragih, M. H., & Angelina, V. (2022). Inventory Control Analysis with Continous Review System and Periodic Review System Methods at PT. XYZ. Business Economic, Communication, and Social Sciences (BECOSS) Journal, 4(2), 97–109. https://doi.org/10.21512/becossjournal.v4i2.8143

Ledy Vanesa, & Helma, H. (2023). Analysis of Raw Material Inventory Control using the ABC Analysis Method and EOQ Method in the Fajar Onion Crackers Business. Mathematical Journal of Modelling and Forecasting, 1(1), 1–9. https://doi.org/10.24036/mjmf.v1i1.7

Maertens, A., Golden, E., Luechtefeld, T. H., Hoffmann, S., Tsaioun, K., & Hartung, T. (2022). Probabilistic Risk Assessment - The Keystone for the Future of Toxicology. Altex, 39(1), 3–29. https://doi.org/10.14573/altex.2201081

Munyaka, J. B., & Yadavalli, V. S. S. (2022). Inventory Management Concepts and Implementations: a Systematic Review. South African Journal of Industrial Engineering, 33(2), 15–36. https://doi.org/10.7166/33-2-2527

Mweshi, G. K. (2022). Effects of Overstocking and Stockouts on the Manufacturing Sector Effects of Overstocking and Stockouts on the Manufacturing Sector View project Effects of Overstocking and Stockouts on the Manufacturing Sector. International Journal of Advances in Engineering and Management (IJAEM), 4(September), 1054. https://doi.org/10.35629/5252-040910541064

Nugraha, A., Sukardi, S., & Rifin, A. (2016). Efficiency Of Raw Material Inventories In Improving Supply Chain Performance Of CV. Fiva Food. Indonesian Journal of Business and Entrepreneurship, 2(1), 23–32. https://doi.org/10.17358/ijbe.2.1.23

Pardede, S. R., & Vanany, I. (2021). Analysis and Control for Heavy Equipment Spare Parts Inventory in the Nickel Mining Industry. IPTEK Journal of Proceedings Series, 0(6), 478. https://doi.org/10.12962/j23546026.y2020i6.11146

Puspasari, D., & Rusli, Y. D. (2023). 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 (Case Study on Surabi Gapura Purwakarta 2023). Journal of Economics and Business Management, 2(3), 50–62. https://doi.org/10.56444/transformasi.v2i3.953

Rizqi, Z. U., & Khairunisa, A. (2020). Integration of deterministic and probabilistic inventory methods to optimize the balance between overstock and stockout. IOP Conference Series: Materials Science and Engineering, 722(1), 1–7. https://doi.org/10.1088/1757-899X/722/1/012060

Saputra, W. S., Ernawati, R., & Wulansari, W. A. (2021). Analysis of Raw Material Inventory Control Using Economic Order Quantity (EOQ) Method at CV. XYZ. International Journal of Computer and Information System (IJCIS), 2(3), 118–124. https://doi.org/10.29040/ijcis.v2i3.63

Silitonga, R. Y. H., Kristiana, L. R., & Parley, T. A. (2021). A Multi-Item Probabilistic Inventory Model that Considers Expiration Factor, All Unit Discount Policy and Warehouse Capacity Constraints. Jurnal Teknik Industri, 23(2), 139–148. https://doi.org/10.9744/jti.23.2.139-148

Sri, D. (2021). Raw Material Inventory Planning of Patient Menu Using Material Requirement Planning (Mrp) in Rsia Kendangsari Merr Surabaya. Jurnal Ekonomi Dan Bisnis Airlangga, 31(1), 14. https://doi.org/10.20473/jeba.v31i12021.14-27

William, W., Ai, T. J., & Lee, W. (2020). A Joint Replenishment Inventory Model to Control Multi-Item Medicines with Consideration of Space Requirements in the Hospital. International Journal of Industrial Engineering and Engineering Management, 2(2), 39–48. https://doi.org/10.24002/ijieem.v2i2.4190

Yafia, S., Sitorus, B., & Yuprin, A. D. (2023). Factors Influencing Rice Procurement at Bulog Office Central Kalimantan Region. 17(3), 98–104. https://doi.org/10.35335/ccria

Zacharias, M. (2022). The Importance of Quality Control for The Success of A Company. Asian Journal of Logistics Management, 1(2), 99–106. https://doi.org/10.14710/ajlm.2022.16787