INVENTORY MANAGEMENT METHOD ANALYSIS (STUDY CASE : PT GANESHA ABADITAMA)

• Main Author: Seno Prabowo, Norman
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/71194
• Institution: Institut Teknologi Bandung

PT Ganesha Abaditama is an Indonesian firm that focuses on the production as well as the procurement of products that are derived from herbs and spices. They presently own numerous warehouses, which they employ to assist their production process. These warehouses include a raw material warehouse, a warehouse for work in process, and a warehouse for finished goods. After a discussion with the operations manager, it became clear that the company has been engaged in a protracted struggle against overstock problems in its warehouses. The researchers employ both qualitative and quantitative approaches in order to get to the bottom of the issue and uncover its causes. The majority of the data collected came from unstructured interviews as well as historical records from the company. To begin, the researcher analyzed the basic data supplied by the company in order to determine which warehouses have the greatest amount of excess inventory. After that, the researcher consults an Ishikawa diagram in order to acquire further comprehension regarding the primary driver of the problem. The researcher utilized the alternative forecasting approach, the ABC inventory analysis method, and the economics of quantity method in order to establish alternative policies for inventory management. Further analysis of the historical data concluded that there are approximately 55% of the total raw material is above their actual demand. Meanwhile, the work-in-process inventory level is 15% above the demand, and both finished goods warehouses are at 7% and 22%, respectively. This research used 5 sample items to be forecasted, and it resulted in 3 different forecasting methods that have the least error for each item: exponential smoothing, a 5-month moving average, and a 6-month moving average Following the completion of the ABC inventory analysis, 17 things were placed in the A category, 18 items were placed in the B category, and 42 items were placed in the C category. Additionally, the researcher came to the conclusion that there are eight items in the warehouse that do not add to the overall revenue (Dead Stock). The application of the economics of quantity method has the potential to save 47.65% in costs related to ordering raw materials; however, after analyzing the characteristics of demand and raw material price fluctuations, the fixed time period model is more preferable for this company.