In this page i would like to share to all of you about inventory level and control. I learned about inventory control in college and practically when i internship at PT. KMI bontang. Ok, let start.

the company’s inventory system is one that needs to be controlled, the extent of the amount of inventory also affects the cost of production and assets stored. therefore the need for inventory control analysis with ABC classification, and the methods of EOQ, ROQ, Min-Max level and Blanket Order, forecast the goods can be determined in the next year and the determination of the minimum and maximum amount of stock with minimum cost consideration.

Logistics Department has an important role as a supplier for other departments. Duties of the Logistics Department is to carry out work in the areas of planning and control of logistics companies,covering material purchase planning, controlling the amount of inventory, logistics and administrative system and discharge of goods to and from the warehouse. Basically, the purpose of material planning and warehousing is to control warehouse inventory to serve requests from the user (user), with an optimum value of inventories, so that the department take responsibility for the continuity of the company’s production.

The department also serves the demand for inventory purchases (non-stock) for the purposes of the company, conduct technical evaluation and the estimated price, so cultivated what is planned to be purchased in accordance with the purposes of the user (user). Objectives to be achieved in each of logistics management is able to support the effectiveness and efficiency in any effort to achieve organizational goals.

In inventory control, there are a lot of material which must be controlled. Therefore we need to classify all of the item. Classification method that is often to used is Pareto Classification (ABC Classification).  Often encountered situation in which of thousands material that must been controlled, only a few materials that have high annual consumption in a year. Classification ABC is guidance of inventory management to set priority of control.

Procedure for make classfication ABC , first set the annual consumption in year for all item. Second, multiply annual comsumption with unit price, to get the value from annual usage. Third, stacking dengan item from the greatest value to the lowest value. Fourth, at the cumulative. Fifth, convert the cumulative value to precentage cumulative.

Example of classfication ABC

After got the classify of the material the next step is make forecasting consumption meterial in next year. There are a lot of softwere that can help you to forecasting for example POM windows, Minitab or etc.

Example forecasting by POM Windows

After obtaining the estimated amount of material usage in the next year, make the estimate calculation total cost with EOQ, ROQ, Min-Max, and Blanket order analysis so it will be known what method gives the minimum cost.

Total Cost

EOQ = …………………..……………………………………(23)

ROQ = =  ………………….………….(24)

Min-Max.stok =………….……..(25)

Blanket order= + SS cost + PC…………….……………………….(26)

Monica Indriani