Yarn Raw Material Supply Planning Using Continous Review System and Periodic Review System Methods

problem withthe company, namely swelling inventory costs due to inaccurate orders resulting in buildup in warehouse. The goaldetermine how many raw materials to order in one order and determinethe size of the safety stock of raw materials and comparing the amount of inventory costs based on the methodcontinuous review and periodic review. Continuous review is a model that controls inventory continuouslycontinuously, while periodic review is controlling inventory based on time intervals. The result is that the amount of raw materials ordered in each order is 29,113 kg.And the size of the safety stock is 23,291 kg per year and the most optimal amount of inventory costsnamely the continuous review system lost sales method at a cost of Rp. 279,254,371,630 smaller in comparisonwith the periodic review system back order method of Rp. 291,315,976,667 with a difference ofRp. 12,061,605,037 per year.