INVENTORY PLANNING ANALYSIS USING THE CONTINUOUS REVIEW SYSTEM METHOD IN THE COTTON, KAPOK, AND ESTER RAW MATERIAL WAREHOUSE AT PT. UNITEX

Abstract

The management of cotton, kapok, and ester raw material inventories at PT Unitex applies the Continuous Review System (CRS) method to optimize inventory control. CRS enables continuous monitoring of stock levels, allowing reordering to be conducted when inventory reaches the reorder point, thereby maintaining optimal material availability, preventing shortages and excess inventory, and reducing storage costs. This study aims to determine safety stock, reorder points, economic order quantity (EOQ), and maximum inventory levels by considering factors such as demand, lead time, and storage capacity. Historical demand data from 2024 were analyzed using the Moving Average and Single Exponential Smoothing (SES) methods, with SES providing the most accurate forecasts for cotton and ester, while Moving Average 2 was most accurate for kapok. The results indicate that cotton has the highest safety stock (54,766.6 kg), an optimal reorder point of 71,632.35 kg, and an EOQ of 35,110 kg with a purchase frequency of 10 times per year, while the maximum warehouse capacity for cotton reaches 207,000 kg. Overall, the implementation of the CRS method has proven effective in reducing the risk of stockouts and minimizing storage costs. Therefore, this study recommends periodic reviews of high-demand raw materials and the optimization of warehouse layout to further improve inventory management efficiency.