Conceptual model of failure risk control on raw materials inventory system

In an effort to overcome the problem on raw materials for the production process in manufacturing highly complex and must be continuously strived to maintain the quantity and quality of production results so that the costs incurred due to problems in the procurement of raw materials can be pressed. Various difficulties in the risk control system in raw materials warehouse becomes an obstacle for the company to maximize its long-term profit. This research paper presents a conceptual model for risk control of failure in raw materials warehousing, which is influenced by various factors in the form of defective materials, materials deficiencies, delays and materials error. Whereas, each factor influenced by inspection variables, loading-unloading, allocated materials, retrieval, procedures, worker skills, and facilities. Conceptual modeling is done using the qualitative phase of system dynamic (SD) methodology on the network and Failure Mode and Effect Analysis (FMEA). The level of improvement in the conceptual model is given for the continuous improvement and improvement of the system of risk control in the raw materials warehouse.