Inventory Planning For Fast Moving Consumer Goods Using Periodic-Review Order-Up-To-Level (R, S) System In Retail X Bandung

Inventory Planning For Fast Moving Consumer Goods Using Periodic-Review Order-Up-To-Level (R, S) System In Retail X Bandung

Author		: MIRA RAHAYU
Published on	: 7th International Seminar on Industrial Engineering and Management (Sanur Paradise Plaza Hotel, BALI, Indonesia)

Abstract

“In facing competition the retail industry selling Fast Moving Consumer Goods (FMCG). One key areas that play an important role in the operation of a retail is inventory control system.
Retail X is one of the retail branches of PT XYZ Bandung will be examined in this paper. During this inventory policies adopted by Retail X only implement by an intuitive management and without any mathematical calculations, this can causes store X often face problems such as out-of-stock or over-stock, and this problem will impact the high cost of the total inventory. This research proposed Periodic-Review, Order-Up-to-level (R, S) system that would be most appropriate in the periodic re-ordering system, which inventory review interval (R) is fixed, but varies order quantity according to the size of the last interval review (Silver, Pvke, Peterson, 1998).
Retail X which has a primary target market students are forced to face the decline in sales in the holiday season and increase when course season. However, the use of past data to predict sales have not noticed the seasons, so it can be expected there are errors on the results of the sales forecast. This led the researchers will use two proposed conditions, the proposed condition 1 will use past data which regard the season and proposed condition 2 will not paying attention to the season. The results of the application of the inventory policy on the proposed conditions 1 can save the inventory total cost by 8% or Rp40,948 at each inventory review interval and lead time.

Keywords: Inventory; retail; R,S system”