INVENTORY STOCK DECISION USING NEWS VENDOR MODEL AND FORECASTING DEMAND IN OCCUPATIONAL HEALTH AND SAFETY MAGAZINE COMPANY

• Main Author: Akbaru Dirgantoro, Gagas
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64682
• Institution: Institut Teknologi Bandung

Amid the development of the digital magazine industry, magazine companies that have not yet transformed must struggle to exist. This problem affects their income. It is because the magazine is a perishable product, which, items that have a fast cycle time and selling value are increasingly lost when the latest edition has been published. Inventory management, specifically Inventory stock decision is important before they do production. This study aims to determine the optimal production amount that must be done by the company so that the amount of overstock is not excessive and the opportunity loss they experience is getting smaller. The news vendor model method will be used in this study. To find the optimal quantity of production, this study uses two calculation methods; The probabilistic method and also the distribution method. To determine what method is the best, this research is based on comparing expected optimal profit from the two calculation methods. The results of this study indicate that the expected optimal calculation of profit probabilistic methods has a greater yield than the distribution method. By using probabilistic methods, the company will get an additional profit of Rp. 2,093,538.00 by decreasing their production cost in each edition they publish, and also their overstock drops by 74%.