Implementation of Reclaimed Teak Wood Raw Material Inventory Control Using the Safety Stock and Reorder Point Methods in the Logistics Division of UD Permata Furni Semarang Yuliana Prima Sari, Agung Budiatmo
Diponegoro University, Department of Logistics Management and Administration, Vocational School, Semarang, Indonesia
Abstract
Raw material inventory control was essential for maintaining production continuity, particularly in companies implementing a make-to-order system. UD Permata Furni Semarang controlled its inventory through routine stock inspections and procurement based on production requirements. However, the company had not established quantitative parameters for determining safety stock and reorder points, while the supply of reclaimed teak wood was limited and uncertain. This study aimed to analyze the application of safety stock and reorder point methods and identify constraints in raw material inventory control. A descriptive mixed-methods approach was employed, with data collected through observation, interviews, and documentation. Quantitative data were analyzed using safety stock and reorder point calculations, whereas qualitative data were analyzed through data reduction, presentation, and conclusion drawing. Data validity was examined through source and technique triangulation. The results showed that both methods produced structured inventory control parameters that were considered effective as a basis for procurement decisions under the existing operational conditions at UD Permata Furni Semarang. The calculation results were implemented in an offline web application for inventory data processing. The main constraint was the limited availability of raw materials that met production requirements. These methods provided a systematic basis for maintaining raw material availability and supporting production continuity.
Keywords: inventory control, make-to-order, raw materials, reorder point, safety stock
Topic: Responsible Digital Entrepreneurship: Fostering Sustainable Business Ecosystems through Innovation and Ethical Governance (Digital Entrepreneurship- Sustainable Ecosystems- Business Innovation)
