Abstract:
The objectives of this research are to 1) study traditional purchasing process of the studied company 2) adapt just in time purchasing to the studied company 3) compare inventory cost between traditional purchasing and JIT purchasing of studied company. The inventory being the most expensive cost of the company, JIT purchasing, a logistics strategy has been applied to manage inventory issues. This research have applied the principle of constant comparison analysis. The results of the study were able to compare the features of traditional and JIT purchasing. From the application of JIT purchasing, it enabled the company to manage inventory costs more efficiently. The study summary from the application of JIT purchasing company can reduce the overall average inventory holding of 65.54 percent. The inventory cycle rate have improved, resulting in the inventory cycle have increased by 180.91 percent and the number of days in the inventory have reduced by 64.44 percent.