Determination of Inventory Policy based on ABC Classification

Abstract

Inventory control is very necessary to prevent supply shortages. The right policy in managing inventory will reduce inventory costs. The type of inventory classification is needed to carry out appropriate handling in managing inventory in both the manufacturing and service industries. Drug inventory classification is done by ABC analysis to manage inventory so that no stock out occurs. ABC analysis tends to profit oriented product because it is based on the funds needed from each type of supply. From the results of data processing analysis, in category A (Always) were 46 types (10,8%) with the annual investment of drugs 70,39%, category B (Better) as many as 74 types (17,3%) with the annual investment is 19,99%, and category C (Control) as many as 307 types (71,9%) with of the total annual investment is 9,61%.