Synchronization of production and sales target through pull inventory management policy

Abstract

The aim of this research is to resolve high inventory problem at RBI Cileungsi warehouse due to the imbalance flow between production outputs compared to sales realization. As an attempt to synchronize these flows we will analyse sales realization data as a representation of customer demand and determine the optimal inventory policy to meet them. Analysis will be conducted to three SKUs which had high investment value. P inventory models will be implemented and then evaluated against current condition to determine their financial benefit. Evaluation suggested that the proposed policy would give total savings of Rp. 780,667,909.97 for the first SKU, Rp. 35,361,072.53 for the second SKU and Rp. 136,729,725.19 for the third SKU. These results lead to the conclusions that the proposed policy should be further considered to be applied to other SKUs.