Authors :
Novita Tania; Tukhas Shilul Imaroh
Volume/Issue :
Volume 8 - 2023, Issue 11 - November
Google Scholar :
http://tinyurl.com/2d3p72tm
Scribd :
http://tinyurl.com/yk8pud4h
DOI :
https://doi.org/10.5281/zenodo.10423087
Abstract :
Flavor is an additional ingredient to enhance
the taste of food and drinks. Following consumer desires
by modifying flavors causes companies to use a make to
order production strategy, so companies tend to
accumulate inventory due to concerns about running out
of stock of raw materials. The aim of this research is to
determine optimum ordering and streamline raw
material inventory costs. This research uses raw
material data over a 12 months period. Total of 441
items were classified using the FSN-ABC method, then
the category that contributed the highest inventory value
was taken, fast moving A 30.37% (5 items), slow moving
A 29.98% (12 items), and non moving A 18.96% (21
items). Continuous Review System (Q System or Q
Model) and Periodic Review System (P System or P
Model) are compared with the existing ones carried out
by the company currently. The research results show
that the application of the Q System can determine the
minimum order quantity per order (EOQ), safety stock
(SS), re-order point (ROP), and order frequency (F). The
P System can determine the time between reviews (P),
target inventory level (T), and safety stock (SS). Q
System has differences with the existing: fast moving of
74.99%, slow moving of 69.92%, and non moving of
79.94%. P System has differences with the existing: fast
moving 73.89%, slow moving 69.55%, and non moving
79.76%. Continuous Review System (Q System or Q
Model) is recommended for application in the flavor
industry to control raw materials.
Keywords :
Flavor Industry, Raw Material Inventory Management, FSN-ABC, Continuous Review System, Periodic Review. System.
Flavor is an additional ingredient to enhance
the taste of food and drinks. Following consumer desires
by modifying flavors causes companies to use a make to
order production strategy, so companies tend to
accumulate inventory due to concerns about running out
of stock of raw materials. The aim of this research is to
determine optimum ordering and streamline raw
material inventory costs. This research uses raw
material data over a 12 months period. Total of 441
items were classified using the FSN-ABC method, then
the category that contributed the highest inventory value
was taken, fast moving A 30.37% (5 items), slow moving
A 29.98% (12 items), and non moving A 18.96% (21
items). Continuous Review System (Q System or Q
Model) and Periodic Review System (P System or P
Model) are compared with the existing ones carried out
by the company currently. The research results show
that the application of the Q System can determine the
minimum order quantity per order (EOQ), safety stock
(SS), re-order point (ROP), and order frequency (F). The
P System can determine the time between reviews (P),
target inventory level (T), and safety stock (SS). Q
System has differences with the existing: fast moving of
74.99%, slow moving of 69.92%, and non moving of
79.94%. P System has differences with the existing: fast
moving 73.89%, slow moving 69.55%, and non moving
79.76%. Continuous Review System (Q System or Q
Model) is recommended for application in the flavor
industry to control raw materials.
Keywords :
Flavor Industry, Raw Material Inventory Management, FSN-ABC, Continuous Review System, Periodic Review. System.
