Case study reveals effective cost reductions in raw materials for UD. Indokarya Brass, indicating improved inventory management practices.
UD. Indokarya Brass is a company engaged in the brass craft industry, UD. Indokarya Brass is located in Growong Lor Village, Juwana District, Pati Regency, Central Java Province. For its daily activities, UD. Indokarya Brass produces types of manufacturing, namely door handles and bells. The main raw materials are brass, copper, tin, and aluminum, where the raw materials are purchased from suppliers in the city and outside the city. Receipt of brass raw materials from suppliers is once a week with an amount of 50-100 kg, for copper raw materials with an amount of 7-10 kg every week, for tin raw materials with an amount of 10-15 kg every week, and for aluminum raw materials with an amount of 3-5 kg every week. Then for the thinner and epoxy raw materials, the company buys it itself from the nearest material store with a measurement of the thinner raw material once a month using 5-10 liters and for epoxy raw materials the company usually buys 5 kg every 2 months. So far, UD. Indokarya Brass has not implemented a good policy on the raw material procurement sistem. Sometimes UD. Indokarya Brass still buys raw materials in very large quantities. This results in waste in raw material storage costs which makes the company spend more. Based on raw material usage data, it can be seen that there are raw materials in the production process of UD. Indokarya Brass, there is excess raw material inventory. This causes high inventory costs to be incurred by the company, in addition to causing the accumulation of raw materials in the warehouse, so that it will increase maintenance costs and storage costs in the warehouse, This results in reduced company profits. The results of the comparative calculation of the selected proposed method with the current company policy show that it has total inventory cost savings with a cost savings percentage of around 83.25% for brass raw materials, 15.28% for copper raw materials, 14.6% for tin raw materials, 43.37% for aluminum raw materials, 4.66% for epoxy raw materials, 4.2% and for thinner raw materials, 40.7%. So the proposed method is proven to be able to make inventory costs more optimal
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Faudjie et al. (2025) studied this question.
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