Saudi Journal of Business and Management Studies (SJBMS)
Volume-3 | Issue-03 | 248-252
Original Research Article
Improved Inventory Management Performance in Indonesia Spare-Parts Company Using ABC Classification and Min-Max Method
Rosalendro Eddy Nugroho, Donnie Albar, Sawarni Hasibuan
Published : March 14, 2018
Abstract
Inventory management requires high investment in the company, including
spare parts companies. Currently, inventory problems at spare-parts Company that is too
many types of components (spare parts), some components (spare parts) there are
overstock, some others stock-out, and planning the purchasing of components (spare parts)
still quite often using intuition. The purpose of this study is to improve inventory
management performance solve the inventory problems at Indonesia spare-part company,
so the company can establish an economical supply budget by setting safety stock,
minimum stock, maximum stock, and order quantities of each components (spare parts)
required to Obtain the inventory cost saving. This study was initiated through the stages of
ABC analysis to determine the grade of material on each item, and then continued with
inventory count minimum, maximum, safety stock, the value of the average inventory,
total inventory cost, turnover ratio and inventory turnover, followed by comparing results
of a calculation method of the min-max with existing method, The results of applied
research with min-max method was found to increased turnover ratio (TOR), inventory
turnover (ITO), lower average inventory values and total inventory cost (TIC) to obtain
reduce inventory cost.