Raw Material Inventory Control Using Always Better Control (ABC), Moving average (MA) and Economic Order Quantity (EOQ) Methods at UD. MBS Audio Pesanggaran Banyuwangi

Abstract

Along with the phenomenon of the rampant trend of audio trucks and audio music to meet the needs of celebrations of holidays and celebrations in the community, UD. MBS Audio Pesanggaran as a service industry that produces audio infrastructure, faces obstacles in managing raw materials, such as inaccurate order quantities, procurement delays, and demand fluctuations that hamper production. This study aims to optimize the supply of raw materials in the form of plywood using the always better control (ABC) method, the Moving Average (MA) forecasting method, and Economic Order Quantity (EOQ) to improve efficiency and smooth production. The analysis results show that based on the ABC method, raw materials are grouped into three categories. Category A consists of 12mm and 15mm plywood, with a percentage of inventory value of 32.83% and 21.89% respectively, so it should be prioritized in management. Category B includes 8mm Plywood and Screws with values of 21.64% and 9.85% respectively, which are still important but not as big as category A. Meanwhile, category C consists of Gun Nails, Wood Paint, Wood Glue, and Putty, with inventory values ranging from 1.09% to 5.40%, which need to be managed so that they are not excessive.12 mm and 15 mm plywood fall into category A, with top priority. 3-month MA forecasting estimates an annual requirement of 436 units for 12 mm plywood and 144 units for 15 mm plywood. EOQ calculations determine the optimal ordering quantities of 116 reorder point units (ROP 4) and 36 units (ROP 1) respectively, with a Total Inventory Cost (TIC) of Rp. 400,017 for 12 mm plywood and Rp. 399,998 for 15 mm plywood. With this strategy, the company can optimize the availability of raw materials, reduce inventory costs, and improve efficiency and smooth production.