Medicine and Consumer Goods Supply Management Design to Reduce Stockout and Days of Inventory in PT. XYZ

Monica Linawati

2018

Abstract

Stockout and overstock are the trigger factors for increased costs. Overstock will result in a waste in the cost of savings and a high Days of Inventory (DOI), but if the inventory is low, there will be a potential loss of opportunity for profit if the actual demand is greater than the estimated inventory and trigger customer disappointment.This study was an observational (non experimental) study. Medicine and consumer goods inventory management planning conducted ABC analysis to find out the products that become classes A, B, and C. Class A products are forecasted using exponential smoothing method for product needs in 2019 and calculated EOQ and ROP. Interviews were conducted with informants regarding the current inventory management system. The root cause of the stockout is analyzed using fishbone diagrams. From the results of fishbone analysis and interviews that have been carried out on informants, it is known that: 1) lack of communication with marketing; 2) making stock estimates is not according to needs; 3) no planned sales average; and 4) there is no coordination between the planner, marketing, and warehouse.

Paper Citation

in Harvard Style

Linawati M. (2018). Medicine and Consumer Goods Supply Management Design to Reduce Stockout and Days of Inventory in PT. XYZ.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 730-735. DOI: 10.5220/0009502907300735

in Bibtex Style

@conference{unicees18,
author={Monica Linawati},
title={Medicine and Consumer Goods Supply Management Design to Reduce Stockout and Days of Inventory in PT. XYZ},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={730-735},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009502907300735},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Medicine and Consumer Goods Supply Management Design to Reduce Stockout and Days of Inventory in PT. XYZ
SN - 978-989-758-432-9
AU - Linawati M.
PY - 2018
SP - 730
EP - 735
DO - 10.5220/0009502907300735