Optimizing Raw Material Inventory Management in UMKM: A Case Study of Boga Raso Restaurant, Dago Branch, Using Activity Based Costing (ABC) Method

Abstract

Boga Raso Restaurant is one of the famous Micro, Small, and Medium Enterprises (MSMEs) in Bandung specializing in various Padang cuisine dishes. Boga Raso Restaurant has 6 branches spread across the city of Bandung, with this study focusing on the Dago branch. In its daily operations, the restaurant manages raw materials such as various types of meat, fish, seafood, staples, spices, and vegetables. Effective inventory management is crucial to ensure efficient storage and maintain the freshness and quality of these raw materials until they are used. This study aims to evaluate inventory management using the Activity Based Costing (ABC) method. This method categorizes raw material inventory into three categories based on annual usage in production processes in monetary terms, using the Pareto principle. According to the data processed for 35 raw material items, it is found that Category A consists of 8 items requiring high attention in procurement, percentage for 22.86% of raw materials with a fund absorption value of 78.7% from the total raw material capital of IDR 1,226,400,000. Category B requires moderate control, comprising 8 items percentage for 22.86% of raw materials with a fund absorption value of 16.7% from the total raw material capital of IDR 240,600,000. Category C requires simple control, consisting of 19 items percentage for 54.28% of raw materials with a fund absorption value of 4.6% from the total raw material capital of IDR 91,950,000.

Keywords: Inventory Management, Activity Based Costing (ABC), raw materials, Activity Based Costing (ABC), Raw Material.