Inventory Control Using ABC Classification and Min-Max Stock Method in The Manufacture of Armored Vehicle Body Hull at PT XYZ

Industrial Engineering Universitas Sebelas Maret, Surakarta, Indonesia

^* Corresponding author: pringgo@ft.uns.ac.id

Abstract

Research and development efforts are currently underway to enhance inventory control systems. However, fluctuations in demand often pose challenges to achieving optimal inventory management. To address this issue, it is crucial to establish efficient control measures that maintain an optimal inventory level. This study focuses on finding an effective approach for PT XYZ to manage stockpiles of raw materials for armored vehicle body hulls, aiming to prevent shortages or excessive stockpiling. The research uses the ABC categorization system and the min-max stock approach as its material inventory control strategies. Inventory classification, inventory turnover, the amount of safety stock, minimum stock, maximum stock, and order quantity are all determined using this procedure. By conducting a case study on PT XYZ's material inventory control for Panzer body hulls, it was identified that 3 materials fell under the important category (A), 3 materials in the moderate category (B), and 20 materials in the less critical category (C). The findings of this research are that the ABC method and min-max stock can be used as a reliable foundation for establishing inventory control parameters. Companies are advised to evaluate and consider the rules for each material, such as material costs, rare or not material types, and a history of delays from suppliers. These factors play a significant role in determining appropriate inventory control measures.