| dc.description.abstract | Raw material inventory is an important factor in the company, so that the supply of raw materials must be sufficient to be able to guarantee the need for smooth production activities. To organize optimal inventory, an inventory control system is needed. One way to reduce inventory levels is to use the Continuous Review method. The Continuous Review method is when inventory reaches the reorder point, an order of Q will be placed which will come after a certain lead time. Based on this research, it can be seen that with data from intellectual journals which discuss controlling PT. Indo Porcelain in January – December 2022 but using the Continuous Review method, the raw material inventory costs incurred are smaller than the costs previously incurred. The total inventory cost incurred before using the method is Rp. 367,907,226.00 with the frequency of ordering each raw material 12 times in one period. Meanwhile, with the Economic Order Quantity (EOQ) method, the costs incurred amounted to Rp. 266,225,109.00 with a frequency of ordering raw materials 8 times in one period. Using the Continuous Review method costs Rp. 260,004,611.00 with an order size of 156,573 kg with a backorder limit of 3,240 kg. Based on the results of these calculations, the Continuous Review method of inventory costs incurred is more efficient. | en_US |
