Raw Material Inventory Control Using The Just-in-Time Method

The object of this study is an industry engaged in the production and marketing of tempeh, which is made from soybeans and yeast. However, in the tempeh production process, there is a problem in determining the amount of raw materials, as there is no proper control of raw material supplies. This is due to the lack of clarity regarding the monthly raw material requirements, leading to an inaccurate determination of the raw material inventory to be stocked and resulting in cost losses because the incoming raw material inventory exceeds the monthly raw material requirements. Data processing is conducted using the Just In Time method to determine the appropriate amount of raw material inventory and production. The Just In Time method results in more effective raw material inventory costs compared to the company's existing policies. Planning and controlling raw material inventory using the Just In Time method can save inventory costs by Rp.31,997,869 or 12.54%.