DETERMINING INVENTORY POLICY TO REDUCE DAMAGED GOODS (Case Study at PT Sukanda Jaya)

Sidarta, Gerwin (2007) DETERMINING INVENTORY POLICY TO REDUCE DAMAGED GOODS (Case Study at PT Sukanda Jaya). S1 thesis, UAJY.

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Abstract

In a company, there are so many things to be considered. One of them is the inventory problem. The company must consider about this problem in order to reduce inventory cost such as set up cost, holding cost and damaged goods cost, so is the expense of the company decrease, surely the nett profit will increase. In PT Sukanda Djaya, the main problem is the amount of the damaged goods cost. It's cost more than Rp 200,000,000.00 annually. This because there are some products that have very short time expire date. So the writer tries to propose a new inventory policy in order to reduce this cost. Writer found that the biggest mistake taken by this company is the company always stock too much (it's because the company doesn't want dissatisfy the customers by stock out case). in this research, writer determines the order quantity and the redder point of each product, and then simulates it by Microsoft Excel program to compare the result with the current policy. After simulation, writer concludes that the proposed policy is better because it reduces more than 50% damaged goods in the first month of applying it. Writer is sure that the damaged goods will decrease again in next month, because when company applies the proposed policy in the first month the result is still affected by the current policy.

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