Sustainability Green Raw Material Inventory with Continuous Replenishment Method: A Case Study Housing Construction Company

Abstract

The company is engaged in housing construction. Every year their production increase using green materials, from 2018 to 2021. This growth emerges problems such as overstock and dead stock. So the company has to determine the best Inventory Control Method to help the company get so much lost in stock and dead stock. In another way, the company can calculate the total cost for all the inventory activities. In the first calculation, we find the best solution forecast method for the next year in moving averages. The best forecast fit in best criteria, such as Mean Absolute Deviation, Mean Absolute Percentage Error, CFE, and Mean Square Error. Calculating the Inventory Control Method employing continuous replenishment, it is interpreted that the customer is still waiting for the product that has not been fulfilled. This Continuous Replenishment Method can calculate Safety Stock, Reorder Point, and Stock Out to minimize the total cost.