ANALYSIS OF INVENTORY MANAGEMENT SYSTEM AT ESGOTADO

• Main Author: Nastiti 29116382, Bidari
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/26103
• Institution: Institut Teknologi Bandung

<br /> <br /> In the millennial era, the creative industry is one of a sector that is expected to be able to become a new force for the national economy in the future. Bandung is one of the creative cities in Indonesia; it became one of the reasons to take fashion as an object of research with many creative industry actors in the field of fashion in Bandung. Esgotado is a clothing brand established in 2012 located in Bandung. <br /> <br /> One of the most significant challenges every business faces is sustainable growth and business. It is not a new problem especially in a creative industry that often experiences unstable business. Efficiency is one of the most important things to maintain business sustainability. The cost of raw materials is one of the most influential costs to see the cost of production. Esgotado’s inventory leftover is far above the material usage, so they have an issue of overstock of materials. Esgotado does not have the production planning method yet. They still determine the quantity of production based on intuition. Therefore, they also have no planning of purchasing raw materials. <br /> <br /> <br /> ABC classification method is conducted as the material limitation. After determining the business issue based on the current condition in Esgotado, some alternative solution is proposed. The proposed solution is using aggregate planning, forecasting method, disaggregate planning, and inventory management control, as the business solution. <br /> <br /> The forecasting demand is conducted from July 2018 to December 2018 using linear regression which has the smallest error value of 176. The total cost of purchasing material in store is 48% lower than the total cost due the minimum order if purchase in factory. Moreover, the total cost of the forecasted stock is 58% lower than the actual overstock. It can be concluded that Esgotado can reduce the cost of overstock by 58% when doing the production and purchasing planning for material needs. The proposed material that is purchased at manufactory will be calculated using the fixed-order quantity model with safety stock to find out when the order should be made, when the minimum order has been determined. Meanwhile, the proposed material that is purchased in a store will be calculated using the fixed-time period model with safety stock to find out the quantity order should be made based on the material needs for every month. <br />