INVENTORY CONTROL FOR OBSOLETE GREIGE STOCK IN PT CGK

• Main Author: Wijaya Saputra, Yoelius
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45460
• Institution: Institut Teknologi Bandung

The textile industry in Indonesia has a strategic role that is prioritized besides oil and gas because it has a large contribution to the country's foreign exchange reserves. This industry also absorbs a very large number of workers. This industry also would be expected to meet the needs of national clothing. Even at the time of the world economic crisis, this industry could maintain an export surplus against its imports. PT CGK is implementing hybrid process, it means when the order is coming, the greige is processed into finished goods. PT CGK is not stocking in thread because the greige life cycle is longer than thread. With the increasing demand and sales of knitted fabrics each year, PT CGK has a large enough greige stock material. This stock material if not addressed can absorb serious capital volume. In addition, the volume of this greige stock is obstructing or occupying storage space. This space retrieval over time causes reduced storage space capacity for new products produced. To overcome the problems faced by PT CGK, which is high volume greige WIP, the short-term strategy and long-term strategy are needed. This research was conducted to make appropriate strategies to reduce excess greige stock (short-term strategy) and prevent new over-stock from occurring (long term strategy). This management process is also structured by understanding internal and external conditions, identifying root causes and steps for overcoming them. This research proposes that the stock. The researcher highlights the accurate forecasting method, which is in result reducing the volume of the greige WIP stock. This enables PT CGK to determine the amount potential sales for reducing amount of greige production. Researcher also compare lot for lot and economic order quantity. And propose that Lot for lot is more cost efficient for industry in developing country.