DESIGNING INVENTORY CONTROL OF TUBE PRODUCTS USING MULTI-ITEM ECONOMIC ORDER QUANTITY (EOQ) WITH ALL-UNIT DISCOUNT TO MINIMIZE COST AT PT. SB

Abstract

PT. SB is a beauty and personal care product retailer company and the level of demand of beauty products are varies and fluctuates every month. Inventory management at PT. SB is not optimal because forecasting of inaccurate product demand and does not have any specific calculations in measuring their inventory level. Shortage of product is one of the problems in the inventory control system at PT. SB, resulting in the level of order fulfillment from customers is still not optimal. Through Multi-Item EOQ with All-Unit Discount method that implements a safety stock will be able to minimize the risk of a shortage of products which also obtains lower total cost and service level of company can be improved. From the results of the research, multi-item EOQ with all unit discount provides optimal order quantity by using 5% supplier discount policies and obtaining lower total cost. In additional, winter’s forecast to build inventory management for 2020-2021 and total cost for year 2020-2021 inventory planning is IDR 20,139,586,512.5.