Proposed Improvements to The Chip Raw Material Control System Using the Continuous Review System and Periodic Review System Methods
Mutia Anggraini, Nazaruddin Nazaruddin, Muhammad Rizki, Fitriani Surayya Lubis · 2023
Each region has its characteristics of traditional food, snacks, and drinks.One example of traditional processed products is generally made from raw materials of tubers such as cassava and sweet potatoes and also processed from fruits and flour (Sari and Nurrizati, 2018).Through optimal inventory control, companies can meet consumer needs on time and minimize the cost of raw material inventory to achieve company goals (Lahu, E.R., 2017).This research focuses on controlling the inventory of raw materials for chips, which will later be useful for minimizing inventory costs to affect the company's benefits.The purpose of this study is to describe raw materials inventory by determining the number of ordering lots and calculating the optimum total inventory cost for the company.The method used is a continuous review system and a periodic review system by collecting data related to the cost of raw material inventory at the UKM Tungku Sanjai Minang Maimbau.The results obtained are the total cost of raw material inventory, the optimal order lot size of raw materials by comparing the Q and P methods, and the total cost of raw material inventory.The calculation of the two methods is then compared to get the best method for controlling the inventory of chip raw materials.