Tobacco Raw Material Inventory Analysis Using the P and Q Method to Minimize Inventory Costs

UD. Jati Waseso is a local tobacco producer in Sidoarjo Regency. Based on company data and the results of interviews with sources, companies often experience stock fluctuations due to fluctuating demand. The purpose of this study is to conduct inventory control using the Periodic Review System and Continuous Review System methods to reduce the total cost of inventory. So, in this study the results the analysis the Continuous Review System method obtained minimum results of Rp 796,061,389 from the company's method of Rp 823,500,000, resulting a cost reduction of Rp 27,438,611 or equivalent to 3.33% of the total cost of inventory or the actual conditions of the company. Because the total cost of inventory generated by the Continuous Review System method less than the cost generated by the method used by the company, the most effective inventory control method in making decisions for inventory control the Continuous Review System method.