Abstract
This study aims to understand the impact of product price discount program taken by PTK toward PT EPM logistic performance as their logistical subsidiary. Product named MBF is being used in this research as it represents the characteristics of discounted products in the company. Using actual sale, sale forecast, inventory product 2013-2014 datas, and system dynamics approach, we intend to show that price discount policy causes fluctuation of sales and inventory level which in turn affect the company's profits. Research concludes that the coordination between marketing and logistics company in prder to respond the price discount prolicy provides a /- 3,5% higher profit for the company along with 7,69% reduction in transportation cost and 20% stock out reduction.
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