Analysis of Product Inventory Control using Continuous Review System Q Method and Periodic Review System P Method to Minimize Inventory Costs

Abstract

Store X is a store that sells muslim fashion products. There is a phenomenon that often occurs in one of Store X's branches, such as the shortage of jetblack hijab products in stock. This phenomenon results in the company's loss of opportunity to gain profit and has an impact on high inventory costs. Based on this, it is known that one of Store X’s branches does not yet have a good inventory system, so it is necessary to apply optimal inventory methods and minimize inventory costs. This study uses a quantitative approach to data collection methods of interviews, literature studies, and company historical data. The data analysis method used is the SMA, WMA, and SES methods with each of the two conditions. As well as using the Continuous Review System method (Q method) and the Periodic Review System method (P method) for the calculation of inventory policy and total inventory costs. Based on the results of the study, it was found that the Q method determines the optimal ordering lot quantity and the point of having to reorder goods. This resulted in the stock in the warehouse always being replenished on time so that there were no excess or shortage of inventory and customer requests could be fulfilled so that inventory costs could be minimized. Based on this statement, it is stated that the Q method is suitable for the company because it provides an optimal inventory policy and minimizes inventory costs by 5.90% or IDR 44,771,467 of company costs.