Inventory Control Model of Beef for Rendang Products

Abstract

The definition and function of inventory management reveal the importance of modern industry in formulating policies that regulate the supply of raw materials, semi-finished products, and finished products. Unfortunately, most companies fail to consider the characteristics of their raw materials when determining inventory strategies. Raw materials that are perishable are those that consider their service life and storage time. Inventory management plays a crucial role in supply chain management, especially for perishable raw materials, such as food products. PT X, a food business in Padang, experienced difficulty in meeting the demand for rendang products due to a lack of raw materials. Therefore, this study aims to develop an inventory management model that takes into account the perishable raw materials' expiration time. The model development consists of three stages: model development design, inventory model formulation, and model testing. The proposed model resulted in a storage time interval of five days and an optimal order quantity of 34 kg of meat with a safety stock of 14 kg. Implementing this model led to lower total inventory costs for PT X than the actual conditions of the company. The total inventory cost obtained using this model is Rp279,797,822. This study emphasizes the importance of considering the characteristics of raw materials in determining inventory strategies to optimize inventory management effectively and efficiently. The study's findings can serve as a reference for other food businesses encountering similar inventory management challenges in the perishable food industry.