AVERAGE INVENTORY LEVEL IMPROVEMENT AT PT.XYZ

• Main Author: Tegar Nurfitrianto, Mohammad
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/67224
• Institution: Institut Teknologi Bandung

Due to competitiveness, the business desires to streamline all systems. PT.XYZ feel compelled to streamline their inventory levels. The company's initial goal aimed to cut the average inventory level of their entire product by 20 to 25 percent. The analysis of inventory level in relation to the monthly average inventory level can be seen in the table below. The goal of the study is to evaluate the firm's inventory management and to provide the most effective and efficient method for reducing the average inventory level in purchasing and product control at PT. XYZ. There are several factors associated with the excess inventory in this case: Sales target, Inventory Control, Usage, Human. In this study, 7 out of 9 P methods have advantages for the number of average inventory levels produced for each product. However, if we look at the total average inventory of all products, the Q method has the advantage of having a smaller overall average inventory level value. For the overall average inventory level generated, the Q method yields IDR 96,792,238.9 and for the P method it is IDR 103,019,834.81. There is a difference of IDR 6,227,595.89 between the total average inventory level between the P method and the Q method. Overall, the proposed fixed order quantity model was able to reduce 69.95% of the total average inventory level from the previous system or IDR 225,295,475.66. From the initial amount of IDR 322,087,714.58 to IDR 96,792,238.91. This makes the new fixed order quantity proposed model successfully exceed their target of 25% reduction in average inventory level. So the fixed order quantity model is the right tool in lowering the company's current average inventory level.