Comparative Study of Raw Material Inventory Cost Control at Palm Oil Mills as a Cost Minimization Step with the Just in Time (JIT) Method: Case Study

Authors : Masayu Rosyidah; Nidya Wisudawati; Aris Setiawan

Volume/Issue : Volume 8 - 2023, Issue 7 - July

Google Scholar :

Scribd :


In the implementation of inventory, the company's purchase of raw materials is still based on the number of requests from customers. Production at PT X occurs when there is an order only not based on regular scheduling. The supply of raw materials for production is only limited to 30 tons / hour per day, but if it is insufficient, no production process occurs or is temporarily stopped. This study aims to compare and analyze the control of raw material inventory costs at palm oil mills in minimizing costs between the company's current policy and if using the Just In Time (JIT) method. One of the goals of Just In Time is to make cost savings so that there is no waste. This study shows that the total inventory costs incurred by PT X at this time are still quite large, namely Rp. 2,096,575,200, while if using the Just In Time method, the total cost of raw material inventory issued is only Rp.1,266,822,846. This means that the company is able to save costs of Rp. 829,752,354. By scheduling and making regular deliveries, the company can reduce the amount of costs incurred.

Keywords : Just in Time, Waste, Raw Material Inventory.


Paper Submission Last Date
31 - December - 2023

Paper Review Notification
In 1-2 Days

Paper Publishing
In 2-3 Days

Video Explanation for Published paper

Never miss an update from Papermashup

Get notified about the latest tutorials and downloads.

Subscribe by Email

Get alerts directly into your inbox after each post and stay updated.

Subscribe by RSS

Add our RSS to your feedreader to get regular updates from us.