The Determination of Inventory Policy in a Limited Storage Capacity by Comparing Single Item Perpetual (Q) Multi Item Periodic (P) Models (Case Study: PT Muawanah Al Masoem)

• Main Author: PUTRI ANWAR - (13413015) , RIZKY
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/24080
• Institution: Institut Teknologi Bandung

PT Muawanah Al Masoem is one of Al Masoem Group's business lines that produces ready-to-drink (RTD) water. PT Muawanah Al Masoem produces various size of RTD water ranging from 240 ml to 19 liters. The other brand of RTD besides Al Masoem are Asri and Quazam. <br /> <br /> <br /> As a company with local marketing level, PT Muawanah Al Masoem has dominated 70% market share with 10.8% average increase in sales from 2014 to 2016. This increments affect the complexity of raw materials control that causes stacking. PT Muawanah Al Masoem's raw material stacking reaches IDR 1.276.229.838 in 2016 with capacity usage of 78,41%. Therefore, an appropriate inventory policy needs to be determined to reduce inventory costs and raw material stacking. <br /> <br /> <br /> The inventory policy of PT Muawanah Al Masoem is determined by using probabilistic inventory model with special characteristics, i.e. limited warehouse capacity and lead time as a controlled variable. The policy use Q and multi item approaches. Q approach results in an independent solution between materials with constant order quantity and ordering time on the reorder point. While the multi item approach, results in a dependent solution between material in one supplier with constant interval ordering time and order quantity is affected by maximum and existing inventory level. <br /> <br /> <br /> The best model is determined based on the minimum inventory total cost. The solution shows that Supplier 1, 2, and 5 use Q model, while Supplier 3 and 4 use multi item model. The proposed policy saves the total inventory cost from IDR 494.595.986 to IDR 162,867,313 or 67.07% and the decrease in stacking from 1,068 m3 to 853 m3 or 20.11%.