DETERMINATION OF INVENTORY POLICY USING DELAY PAYMENT, LIMITED BUDGET, AND DISCOUNT MODEL ON PT REKAN BANGUN PRATAMA

• Main Author: WINATA, HARRY
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/43187
• Institution: Institut Teknologi Bandung

PT Rekan Bangun Pratama is a building material supermarket that sells more than 10,000 product variations and applies the one stop shopping concept. Along with the business, companies often have difficulty in determining the amount of stock. This can be proven by increasing the amount of empty stock (around 250%) and decreasing inventory turn over ratio (around 65%). By using the 5 whys method, the root cause of the problem is the absence of inventory policies that can consider the conditions of procurement in the company, such as cash limitations, delay payment, and discounts when buying in large quantities. In this research, a model developed by combining model Q with delay payment and cash inventory model by Mohan (2008). Calculations using the development model are carried out in category A of the ABC classification which is normally distributed (594 products) with three scenarios to determine the best delay payment policy. Scenario I is a condition where the company does not need to pay DP (down payment) and make all payments when due. While Scenario II is the same as Scenario I but needs to pay DP. Scenario III is a company making payments using the installment method. The best scenario is Scenario I because it produces the lowest financial holding cost. Then the development model validate by comparing the proposed inventory policy with the existing one using a simulation. Existing inventory policies tend to buy goods in large quantities to get a discounted price. This can minimize inventory purchasing costs, but with limited cash conditions, purchasing goods at a discounted price will cause large stock (increasing inventory cost) and the inability of the company to buy other empty items (increasing shortage csot). Sensitivity analysis was also conducted and three sensitive parameters were obtained, there is demand, tempo and bank interest rates. From the simulation calculation, it can be concluded that the proposed inventory policy can reduce the company's total cost of Rp. 38,320,112