Optimize Inventory Stock Using Period Review System: A Case Study at Seafood-Based Company

Abstract

This study was conducted in a small seafood-based company established in April 2021. This company has their main office called PT X, where it becomes the main place for every item available to the branches is stored. There are two types of items: perishable and non-perishable products. During its existence to take care of the items in the warehouse, the company has a problem maintaining the items bought which leads to the disproportion between the supply and demand. Since the company needs to improve its efficiency and prevent the waste of its product with a short life cycle, this research aims to find the optimal stock for the company to supply for each period determined; by finding the optimal stock, it is expected that the company can reduce the waste and minimize its inventory cost. By using the Periodic Review System, the author wants to analyze and compare the inventory management system in the company when using the existing system applied and Periodic Review System. The result shows that Periodic Review System is more effective because it gives the result of the optimal stock needed for each period. Moreover, it also saves money for the company rather than using the existing method. The result shows that the company will save as much as 4% for Gurami, 10% for Squid and Pomfret, 12% for Prawn, and 16% for Trevally.