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Abstract:
Low efficiency in spending
inventory cost could be harmful for every company. In agriculture industry,
there is bigger risk of having higher inventory cost because inventory could
turn into wastages. This research aims to help PT. Bimandiri Agro Sedaya, as
one of the biggest agriculture wholesalers in Indonesia, to reduce their
inventory cost by applying new inventory review policy. From the analysis, researcher proposes Holt-Winter
exponential smoothing with multiplicative model as new forecast method to
improve their demand forecast. The method is chosen since it has the smallest
forecast error among others. By using this model, the measure accuracy is as
follows: MAPE = 30%, MAD = 903, MSE = 1,009,481. The firm are also suggested to
use periodic inventory review policy for the next period because it has the
lowest inventory cost, which is Rp 2,031,107,223, after being simulated for
2019. By applying this policy, the firm can reduce their inventory cost until
65%.
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