E ISSN: 2583-049X

International Journal of Advanced Multidisciplinary Research and Studies

Volume 3, Issue 6, 2023

Implementation of Inventory Management to Increase Profitability in PT. Satria Sukses

Author(s): Fitri Maesaroh, Vendi Irawan


With advances in information technology, businesses are now able to gain information about their customers' future demands. This document describes various ways to use this visibility in end-product inventory management at the operational level. The aim is to explain the results of four different types of planning information: point-of-sale data, customer forecasts, stock-on-hand data, and planned orders. This information includes the capital tied up in inventory when using the re-order point (R, Q) inventory control method in the distribution network. This research conducted at PT Satria Sukses uses explanatory research to solve inventory problems, and also includes application research that aims to find ways to improve the company's current profitability. This research takes data samples from 2015; there are some restrictions during the preparation of this research, such as calculating the reorder point, safety stock, and the cost of ordering goods to suppliers. The results show that the value of information sharing in operational inventory control varies greatly depending on the type of information shared and whether the demand is fixed or not. The most precise type of information yields significantly higher value, while other types of information yield lower value. Regardless of the type of demand, point-of-sale data sharing is useless; stock-on-hand information is useful in situations where demand is fixed; customer forecast and planned order information is useful in situations where demand is not fixed. Based on a specific model design and lacking primary empirical data, the simulation methodology limits the study to relationships within supply chains and distribution networks with a small number of customers. Recommendations are given on what type of information is appropriate to share with different types of demand patterns and distribution networks, as well as how the value of information sharing is affected by order batch size and lead time when using reorder points, EOQ (economic order quantity),and safety stock methods. Not many studies have provided a specific assessment of the possible impact on inventory control when sharing planning information in various contexts. The results of this study also question some previous research on information sharing.

Keywords: Inventory Management, Reorder Point, Economic Order Quantity, Safety Stock

Pages: 1061-1065

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