CV. Sumber Utama Baru is a company operating in the wood manufacturing industry. This study aims to analyze the raw material inventory control system at company and to evaluate the implementation of the Just In Time (JIT) method in order to improve cost efficiency in production. The main problems faced by the company include high inventory costs, waste, long lead times, and a decline in wood quality. The results of the study indicate that the implementation of the JIT method is able to reduce total inventory costs to Rp 369.952.008 and decrease the order quantity to 115.98 m³ with a more frequent ordering frequency of 19 times within one period. This demonstrates an improvement in efficiency compared to the conventional method. Linear regression analysis also shows a relationship between the percentage of cost savings and the resulting total inventory cost of 59%, with a difference of Rp 536.241.643 between the conventional and JIT methods. Therefore, the JIT method is considered more effective than the previous inventory policy in improving cost efficiency and supporting the smooth operation of the production process.
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