IMPROVING INVENTORY MANAGEMENT POLICY: CASE STUDY 999 STATIONERY

Abstract

Inventory management is important part in an organization or company because it can indirectly affect organization or company profitability. For store such as stationery store that has major activity to sell and buy product, inventory take an important part, because the amount of product that they keep can affect cost that they need to bear. Currently, 999 Stationery face problem in their inventory m anagement, their problem mostly about the high level inventory and product shortage which result in high cost that they need to bear. The cost they need to bear include holding cost and shortage cost. If the store keep many products in their warehouse it can give impact to high holding cost .But, if there is a lack of product stock it will impact to unsatisfied customer that can lead to the loss opportunity to get the profitfrom the customer, since the customer probably will buy the product from different store. Those problem can happen because the responsible person in store did not have an appropriate method to determine when to order and how much to order. The methodhology used are qualitative such as interview, and quantitative to calculate the method/tools chosen and see the impact of the metode/tools, there will be comparison between the current inventory policy and proposed inventory policy. The result of this reseach are probabilistic model is the most suitable method to determine when to order, and economic order quantity is the most suitable method to determine how much to order. With the using of those method 999 Stationery can generate lower cost compared to the current strategy.

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