THE ROLE OF DEMAND FORECASTING ANALYSIS AND INVENTORY MANAGEMENT TO REDUCE OVERSTOCK (CASE STUDY : PT. DAHANA)

• Main Author: Irfan Rizqi, Muhammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53406
• Institution: Institut Teknologi Bandung

PT DAHANA (Persero) is an Indonesian State-Owned company in the field of strategic industry offering integrated explosives services for Oil & Gas, General Mining, Quarry & Construction, and Defence sectors. PT. DAHANA has a problem related to mismatch between demand and inventory, this is because the company faces uncertain demand and can cause overstock. In this purpose of this research are to finding and understanding the root cause so the company can reduce overstock and increase revenue. The research framework of this study is to optimize supplies at PT. Dahana. This research framework has several steps. First, in the external analysis the author uses PESTEL Analysis to learn about the market and second, uses Porter's Five Forces analysis to explore the industry. Third, find the root cause using the Root Cause Analysis (RCA). Fourth, the authors propose several methods to solve the problem. There are three things consist of root causes the problem; (1) inaccurate forecasting method, (2) the inventory management is not correctly applied, and (3) government regulation related to mining are still unclear. Several methods are used to solve this problem, namely forecasting and inventory management. Forecasting prepare the company for the upcoming demand that might occurred and help the company to plan its inventory management by knowing how many products that need to be stored. The results of forecasting show that the method chosen is single exponential smoothing because the error value is the lowest, while The result of EOQ method has a lower cost than using the current method. The EOQ method cost is Rp 10,583,341,646.17, while the current method cost is Rp 11,651,900,315.625. If the company can implement the EOQ method, the company can save Rp 1,068,558,669.455. and also in terms of average inventory level (AIL), that by implementing EOQ the AIL value is lower than the existing method.