INVENTORY MANAGEMENT AT PT. ABC USING ALGORITHM WAGNER-WITHIN METHOD

Abstract

The purpose of this study was to determine the efficiency of inventory management of raw material using an algorithm Wagner-Within the PT ABC. This study uses a descriptive qualitative approach. The analysis technique used in this study is to calculate how the number and frequency of purchases, as well as inventory costs (Ordering Cost, Ordering Cost and Total Inventory Cost) according to the actual concept of the company and according to the calculation of the Wagner-Within (AWW) Algorithm method. The results of this study are F ordering of raw materials according to the calculation of the Wagner-Within Algorithm method (AWW), ordering raw materials carried out 5 times in 1 year, while according to the calculation of the existing conditions of the company, ordering raw materials made 7 times in 1 year. Wagner-Within (AWW) Algorithm Method this still results in a more efficient and optimal ordering fee than the order cost according to existing conditions company. For storage costs according to existing conditions, the company is still more efficient than the storage costs of the Wagner-Within (AWW) Algorithm method. For the total cost of raw material inventory, the Wagner- Within (AWW) Algorithm method is a method that produces the optimal and efficient total cost of raw material inventory.