Inventory-based Business Strategy using FP-Growth at PT. Pinus Merah Abadi, Kendal Regency

Abstract

This study aims to analyze inventory optimization using the Frequent Pattern Growth (FP Growth) algorithm, in relation to business strategy and/or accounting information systems, which a knowledge gap in previous research is as described above is the lack of knowledge about the application of the FP Growth algorithm in inventory optimization. This study was based on one year of sales and inventory data from a snack and beverage company, as a case study employing private data. A total of 3,370 transaction data samples were processed using RapidMiner data mining with FP growth algorithm. The results of both methods showed that the inventory level must be sufficient and produced two categories, namely large stock and small stock. The findings of this study indicated that the company has closely optimized its inventory since there were some products that were not involved in the association rules of sales.