A DESIGN OF RAW MATERIAL SUPPLIES CONTROL SYSTEM OPTIMIZATION APPLICATION USING REORDER POINT

Abstract

Availability of raw materials is the cornerstone of a company to produce a product, the
lack of availability of raw materials will inhibit the production process, while in case of
excess  raw  materials  it  will  be  piling  up  in  warehouses  and  the  company  must
mengeluaran charge for storage. Reorder point is a point or a limit on the amount of
inventory at a time when the booking must be held back.This point shows the purchasing
department to hold back orders inventory materials to replace inventories that have been
used, thus, lack or excess raw materials can be tackled by the company. Determination of
Point Booking Back Raw often experience problems if done manually determination, so
that the company experienced problems in Raw Material Inventory control.

This research will be made a model system for analyzing optimization application control
with ReOrder Point (reorder point) inventories of raw materials, so hopefully the
management can be appropriate in determining the point Booking Back Raw Material
Inventory.