IMPROVEMENT OF INVENTORY MANAGEMENT OPERATION AT PT. RED TO INCREASE COMPANY’S REVENUE

• Main Author: LISTIANI (NIM 29316043), GRACE
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/27571
• Institution: Institut Teknologi Bandung

PT. RED is one of the distributor from PT. Schneider Electric Indonesia that sells electrical equipment for protection. To provide stock for the customers, PT. RED needs to order to supplier so the company will be able to deliver the goods on time. Recently, the company has an increasing demand for some rare products with limited stock due to the raising number of customers. Unavailability stock will impact to profit loss and bad service level to customers because they are going to find other company that has ready stock products. Because of that, the company has been considered for having a new place as its new representative at the same region with the main office. <br /> <br /> <br /> Fishbone diagram is being used to find the root causes of this problem. Some interview is being conducted to some related respondents, either from internal and external. There are five root causes of this problem: no regular cycle counting, no safety stock for rare products, unclear job description, no reward and punishment system, and no adequate space. <br /> <br /> <br /> The proposed solutions are making a regulation to do cycle counting regularly, counting the quantity of the safety stock, making a clear job description, creating reward and punishment system, and investing another place. Fixed-Order Quantity model is being used to determine the point to do the order (reorder point) and the amount of the order & safety stock. SMART analysis is being used to find a new place and payback period method to know the amount of time required for the company to recover its initial investment. <br /> <br /> <br /> A clear job description will be the first thing that the company needs to do to make it a stronger organization. In terms of inventory management, cycle counting and safety stock are two things that need to be applied for having an adequate stock. Reward and punishment system will also increase the employees’ performance. A new place will be needed as new representative and warehouse to meet the demands from growing customers.