IMPROVING INVENTORY MANAGEMENT AND FORECASTING SYSTEM IN PT XYZ

• Main Author: Nirvana (19015013), Kinanti
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/28495
• Institution: Institut Teknologi Bandung

PT.XYZ, as one of fashion retailer in Bandung is facing issue on how to optimize their <br /> <br /> operation management. Currently, the company does not have any proper calculation on <br /> <br /> determining how much stock they needed, level of stock should be maintain, the <br /> <br /> appropriate time to reorder the stock and any system to forecast the future demand. That <br /> <br /> condition makes overstock and stockout occur in the company. This study is conducted in <br /> <br /> order to identify the root cause of inventory management issue and design the appropriate <br /> <br /> policy for inventory management and forecasting system in PT. XYZ. <br /> <br /> Direct observation and interview with the representative of PT. XYZ are conducted to <br /> <br /> gather detail information. Theoretical framework that can be used for this study are <br /> <br /> gathered through literature study. In this study, historical data is used to analyze current <br /> <br /> system and propose reorder point, minimum stock, and order quantity for the new inventory <br /> <br /> management system. Cost comparison are conducted to know whether the proposed <br /> <br /> inventory management system is better than the existing system and can be applied in PT. <br /> <br /> XYZ. Comparison between several forecasting methods also conducted in order to <br /> <br /> determine which method is the best for demand forecasting in PT. XYZ. <br /> <br /> The research finds out that PT. XYZ does not has system to determine the appropriate stock, <br /> <br /> order quantity, and the time to reorder stock. The company also does not have system to <br /> <br /> forecast the demand. Those factors are causes of inventory management issue in PT.XYZ. <br /> <br /> Economic Order Quantity (EOQ) model is used to determine the new order quantity, and <br /> <br /> probabilistic and safety stock model to determine the reorder point (ROP) and minimum <br /> <br /> stock. The analysis finds out that the new proposed system can reduce the number of <br /> <br /> shortage, overstock, and decrease the total inventory cost. <br /> <br /> This research only conducted for PT.XYZ that located in Bandung, focusing on inventory <br /> <br /> management system, use historical data from January 2017-February 2018 period, and this <br /> <br /> study only conducted for 4 items which are included in fast moving inventory.