Optimization of Trading Goods Inventory Management Through ABC-XYZ Analysis Farid Yudhistira (a*), Rizqiah Insanita (b)
a. Faculty of Economy and Business, University of Indonesia, Indonesia
*farid.yudhistira[at]ui.ac.id
b. Faculty of Economy and Business, University of Indonesia, Indonesia
Abstract
This research will examine the inventory management at PTFI, a global company with headquarter in London, England. There are three types of goods available at PTFI such as raw material, finished goods and trading goods, where the trading goods contributes to 50% of total goods value. In managing inventory at PTFI, there is no classification of trading goods inventory so that inventory management cannot be carried out optimally and there is an imbalance in the inventory. In addition, the company^s failure to achieve the company^s targets for OTIF, NSMI, trade working capital and inventory days has made the management of trading goods become crucial. In order to optimize the inventory management of trading goods, the method to be used is the integrated ABC-XYZ Analysis. ABC Analysis method is a classification of goods based on the total value involved in a pareto. This method will be integrated with XYZ Analysis whose classification will be determined based on the results of interviews with the parties involved and analysis of the turnover rate and lead time of the goods. The combination of the two will produce a matrix that can be used as guidance in determining future purchasing policies. Results of the ABC-XYZ analysis will be simulated to determine the effect on inventory management at PTFI.
