INVENTORY MANAGEMENT & WAREHOUSING

 Product’s Characteristic

Kerepek Ubi Mastuki & Zaronah Company manages their process of inventories successfully. Their company’s product was a type of weight- bulk ratio’s product. Weight- bulk ratio’s product is referring to the ratio of weight to volume of the product. So, the potato chips are the low-density products, the space (volume) available will be used up more quickly compared to the weight limit. This would increase the costs of equipment and storage facilities. The potato chips are low utilizing but they manage their product regularly. They manage their products by the block stacking system. So, their product’s more secure and non-perishable.

                    Block-stacking System

Besides that, their production is based on order, so their production is just-in-time system. So, by using this system, inventory management is none of their serious problem because their inventory is lower at their own warehouse. When the seasonal period come, they tend to manage their product by block-stacking. So, their product remains the highest quality and their customer’s satisfaction totally in high ranking. By this good service and planning for their inventory management and warehousing tend to save their inventory cost and reverse logistics does not involve to their product. A good planning and managing inventory and warehousing important to have many patronage’s customers.

 Combine Point of Sale, Production and Storage

They incorporate the point of sale, production and storage in one place. By joining the point of sale, production and storage, they eliminate many cost and waste. They also locate their company near the source and far from the customer to reduce the cost of living. Such as, they locate their sources like the plantation near to the company. Even though, far from customer, many customers willing to have a long journey only to get their product because of the satisfaction and quality. Everything that the impossible is possible if we manage to build up the customer’s satisfaction, then the profitable and the new customer will make the company remain success.

                     Private Warehouse

        Kerepek Ubi Mastuki & Zaronah Company has their own warehouse that combine with their company. They had schedule that every Friday and Tuesday is a day of product’s operation. They systematic production management make their warehouse more utilize and the production more regular. They also use the total logistics concept. They make trade-off analysis within their distribution components. They decide to use fixed storage locations compared to random storage. They arrange their product by the type and sorted by their different seasoning. This storage is easier for picking but not fully utilize. But everything is under their control because they are using their own warehouse.

 Material Handling and Packaging

                Material handling and packaging process were handled by their own company. They packing their product with the protective packaging to avoid their product to avoid their product destroyed and prevent slightly stale due to colds. They also packing their product by packet following a predetermined dosage weight. Besides, their product is not a product that have risk characteristic. For an example, their product is not a valuable, flammable, and have tendency to explode. So, the material handling and packaging of the product is not a complicated thing that they need to put more care that need to be taken into consideration; such as special refrigerator and packaging.