By
Calvin Valentino 13111045
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
BUSINESS ADMINISTRATION & HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
Revision after thesis defense on August 13th2015
STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Calvin Valentino
_____________________________________________
Student Date
Approved by:
Rudy Tobing, MBA
_____________________________________________
Thesis Advisor
Date
Prof. Dr. Eric J Nasution, MBA, MA, PhD
_____________________________________________
Dean
ABSTRACT
ANALYSIS OF SUPPLY CHAIN MANAGEMENT ON INVENTORY METHOD TO SOLVE UNDERSTOCK PROBLEM: CASE STUDY
PT.TRIDIKA PUTRA UNGGUL
By
Calvin Valentino Rudy Tobing, MBA, Advisor
SWISS GERMAN UNIVERSITY
The most common problem of related-supply chain is management inventory besides delivery and other integration with stakeholders, especially to companies that serve as distributors that carry thousand types of product. Each product must have its flow and demand characteristics. The research focuses on identifying the lost potentialdemand due to understock problem faced by the firm. The research tries to provide forecasting-based strategic steps for the company to be able to effectively manage their inventory. Forecasting method employed in this research is 3-Months MA, Exponential, and Regression. The research also focuses on the Top 9 products with understock problem based on ABC Classification Method products that contributed about 30.51% to total demand of the last six months. The research focuses on forecasting the highest and the lowest understock products classified into category A of the ABC analysis. The result shows that the best forecasting method is 3-month MA error as it has the least error.Moreover product of TOP 1 PRO MATIC 10W-40 - 12 x 800 cc is still experiencing understock while SDO DIESEL 4LTR(4X4) meets demand that should have been fulfilled if the company applied relevant forecasting method
Keywords: Inventory Management, ABC Method, Forecasting, 3-Months MA, Exponential, Regression
© Copyright 2015 by Calvin Valentino
All rights reserved
DEDICATION
I dedicate this hard works for my mother, my father, my brother, my sister and my best friends.
ACKNOWLEDGMENT
I would like to thank God, who is the source of life and strength of knowledge and wisdom.
I take this opportunity to express gratitude to all of the Department faculty members Mr.Fitter Abadi and Mrs. Nila K Hidayat for their help and support. I also thank to my parents for the unceasing encouragement, support and attention. I am also grateful to my partner who supported me through this venture.
To fellow classmates for sharing their knowledge and idea for this thesis, especially Fellicia Chandra, Aninditya, Antia Savira, Anggin M’aruf, Muhammad Fadli Hanafi, Andi Natshya, Irene Chandra, Kak Hana, Petrus Gunawan and Willyanto Jap. To the beloved parents that give me support all the time. And also to my advisor Mr.Rudy Tobing because of him gives advice and support during the process to finish this thesis.
TABLE OF CONTENT
STATEMENT BY THE AUTHOR ... 2
ABSTRACT ... 3
DEDICATION ... 5
ACKNOWLEDGMENT ... 6
TABLE OF CONTENT ... 7
LIST OF FIGURE... 9
LIST OF EQUATION ... 9
LIST OF TABLE ...10
CHAPTER 1 ...11
INTRODUCTION ...11
1.1 BACKGROUND ... 11
1.1.1 Best Practice Issues ... 12
1.1.2 Inventory Management ... 13
1.2 RESEARCH PROBLEMS ... 13
1.3RESEARCH QUESTIONS ... 15
2.2 RESEARCH OBJECTIVES ... 16
1.5 RESEARCH SCOPE OF ANALYSIS ... 16
1.6RESEARCH SIGNIFICANCES ... 16
CHAPTER 2 ...17
LITERATURE REVIEW ...17
2.1FRAMEWORK OF THINKING ... 17
2.2ELEMENTS OF INVENTORY AND DEFINITION ... 18
2.2.1 Types of Inventory ... 18
2.3INVENTORY COST ... 19
2.4ABCCLASSIFICATION ... 20
2.5FORECASTING ... 21
2.6PREVIOUS STUDY ... 25
2.7RESEARCH MODEL ... 27
CHAPTER 3 ...29
RESEARCH METODOLOGY ...29
3.1RESEARCH PROCESS ... 29
3.2TYPE OF STUDY ... 30
3.3POPULATION AND SAMPLING ... 32
3.4DATA SOURCES AND COLLECTION... 32
CHAPTER 4 ...33
RESULT AND ANALYSIS ...33
4.1INITIAL PROBLEM EVALUATION ... 33
4.2OPPORTUNITY COST ANALYSIS ... 35
4.3ABCANALYSIS ... 35
CHAPTER 5 ...39
5.2RECOMMENDATIONS ... 40
5.3FUTURE STUDIES ... 41
GLOSSARY ...42
BIBLIOGRAPHY ...43
APPENDICES ...44
