#TITLE_ALTERNATIVE#

• Main Author: ARIYANTI (NIM 29106018), YUNNI
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/9718
• Institution: Institut Teknologi Bandung

XYZ is a local footwear retail company in Bandung. The challenge for a retail company of fashion products is a highly uncertain demand and short product life-cycle. The fast changes of trend and the threat of new competitors force the company to adopt a quick response toward market demand and at the same time to maintain efficiency in total cost. Therefore, the company needs a well organized supply chain management to maintain the operation both factory and outlet to perform the balance between efficiency and responsiveness. <br /> <br /> <br /> <br /> <br /> XYZ problematic symptoms nowadays was a decreasing profit because of a decreasing number in product selling and a high holding cost in their outlet. Through collecting some relevant data and conduct analyze, it can be concluded that the root cause begin from both factory and outlet working system. At factory, the problem appears from design division about decision to use economic raw material. Then at the outlet, the problem was come from the proactive inventory system with minimum supporting data. Both of the root causes was interdependent and influence the supply chain. <br /> <br /> <br /> <br /> <br /> Proposed improvement solution for supply chain was by managing design and outlet inventory. One of the possible plans in design management is to eliminate the discrepancy between the product design and available raw materials that mentioned before. The product can be designed by using Kano model that represented the customer need. For a long-term planning, the company should try to import more attractive raw materials which have a better quality. At the outlet, an accurate response can be applied. This accurate response is a system that can overcome the uncertain demand in order to minimize unnecessary inventory. Newsvendor model was applied to achieve the system. Newsvendor model can be used to determine the mismatch cost that were resulted from lost sales and leftover inventory cost. <br />