INVENTORY MANAGEMENT STRATEGY ANALYSIS FOR SMALL MEDIUM ENTERPRISE IN CV XYZ
The current global economy presents significant challenges for companies due to uncertainty, which can lead to financial difficulties if not managed well. Frequent price adjustments due to extreme market volatility also impact both large companies and small and medium-sized businesses. Small and med...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/83900 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The current global economy presents significant challenges for companies due to uncertainty, which can lead to financial difficulties if not managed well. Frequent price adjustments due to extreme market volatility also impact both large companies and small and medium-sized businesses. Small and mediumsized businesses, especially in developing countries like Indonesia, play a critical role in economic development. For example, CV XYZ does not use inventory management and has experienced overstock issues, leading to increased inventory costs and impacting the company's financial condition.
By analyzing the inventory model, researchers found that the most suitable inventory management method for CV XYZ is the Economic Order Quantity (EOQ) method. This method helps minimize inventory costs and determine cost-effective order quantities for each product. For Spare Partss, Oil, Variation/Racing, and Tires products, the most appropriate inventory model is EOQ with Total Inventory Cost (TIC) as follows: Spare Parts: IDR 5,385,634.17 in 2022 and IDR 5,347,401.14 in 2023 Oil: IDR 2,701,259 in 2022 and IDR 3,226,643.18 in 2023 Variation/Racing: IDR 743,652.45 in 2022 and IDR 904,614.29 in 2023 For tire products, with total inventory costs amounting to IDR 1.103.123,89 in 2022 and IDR 1.956.372,91 in 2023. This analysis also determines safety stock and Reorder Point (ROP) for each type of product.
The research results emphasize the importance of inventory management in increasing operational efficiency and financial control. Further research can explore the influence of technology on inventory management and the impact of demand and lead time variability, although the current research is limited to CV XYZ only and may partially represent the conditions of other small and medium-sized businesses. |
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