Inventory control systems with safety stock and reorder point approach

Abstract

The inventory control systems has an important role to monitor the condition of the goods at the supply chain stage of goods distribution from the central warehouse to retail in accordance with consumer demand. The research aims to develop inventory control systems on the supply chain distribution of goods from suppliers to retail through the central warehouse with minimal supply chain costs. Minimization of supply chain cost using martingale model of forecast evaluation, and the result as the basis for calculation of safety stock and reorder point. The results of research are the system that can be used to control inventory and renewal of goods in the central warehouse by calculating the minimization of supply chain cost based on consumer demand. Case studies were conducted on the supply chain distribution of goods from the central warehouse to the retail in Semarang. The observation data derived from the goods distribution from central warehouse to retail for certain products over 4 time periods. Through such inventory control system, can minimize supply chain cost, and product inventory level can be maintained in time and amount of inventory that must be fulfilled.