INVENTORY CONTROL OPTIMIZATION TO MAINTAIN SERVICE LEVEL AT PT HARKASHA KURNIA ABADI

• Main Author: Yudis Sasmita, Anjas
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62949
• Institution: Institut Teknologi Bandung

The establishment of refill perfume shops has sprung up all over Indonesia in the last 20 years which causes the increase in demand of imported perfume oil. Therefore, the establishment of PT Harkasha Kurnia Abadi was intended to meet the need of imported perfume oil. In the process, PT HKA faces several problems, which are slow moving perfume oil, perfume oil with 0 inventory turnover ratio and perfume oil with undefined inventory ratio. Unfortunately, these problems caused a decrease in the service level or lead to dead stock. This research is purposed to solve these problems and give some proper solutions. To solve these problems, the author has 2 main objectives. First is to find and understand the main business problem, and the second is to determine the most effective ways to solve the business problems. The studies of Business Situational Analysis and Current Reality Tree show that the main problem is from the internal of the company. The employees of PT HKA didn’t master and applicate the essential’s theory of Inventory Management. This problem indirectly declined the service level. To overcome this problem, training program using reinforcement theory should be conducted. This theory aligns the program with the company objective, which is to adapt the most proper inventory control system. In finding the most proper inventory control system, there are three methods which should be used. First, Inventory Classification shows that the company needs to prioritize the A Class Item from ABC Classification in the Demand Forecasting and Inventory Model calculation. It is because the A Class Item has the highest contribution to the company revenue. Second, after conducting the Demand Forecasting calculation, Exponential Smoothing With 0.9 ? forecast should be chosen by the company. It is because this method has the lowest MAD among the others. Third, in the Inventory Model calculation, we can conclude that the P-model is more preferred after conducting the sensitivity analysis. It is because if the demand is increasing by 15%, this model still can meet the demand. Other than that, the total cost is not significantly different from Q-model.