| PT. GT Kable Indonesia, Tbk is a manufacturing company engaged in the production of cables. Since the beginning of production, this factory has become one of the one of the qualified suppliers of power cables to PT PLN and PT. Telkom. The main raw material to manufacture wires are aluminum and copper. PT. GT Kabel Indonesa, Tbk control of their raw material inventory levels with continous review and brainstorming with their distributors. The consequence, if requirement raw material increase, the raw material which using frequently will be stockout. Those thing cause higher annual inventory cost per year. Calculating with company inventory control system in 2010, give result annual inventory cost per year (OT) that is Rp. 3,647,880,783,980.70. Purpose of this study is optimize company’s profit and determine the right re-order poin. Based on the problem, an inventory control system for raw material is made by using continous review model (Q method) which has two main parameter, economic order quantity and reorder point. , Periodic Review Model ( P method ) and Re-Order Point System with short lead time. By the calculation, the result of the total annual inventory cost (OT) using Q method is Rp. 3,618,688,793,980.70. Rp 3,618,405,958,247 for using P method and Rp. 3,699,845,706,820.94 for using Re-Order point with short lead time. Comparison of three methods using the parameter Turn Over Ratio (TOR), Average Inventory Level (AIL) and Total Annual Inventory Cost (OT). Based on the company purpose that is to minimized the annual inventory cost of raw material procurement, therefore the selected method is P method. |