Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)

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Proposed Forecasting and Inventory Management System to Reduce Out of Stock: A Case Study of Distributor of Agricultural Product

Authors
Kiagus Muhammad Amris Amrullah1, *, Gatot Yudoko1
1School of Business and Management, Bandung Institute of Technology, Jalan Gelap Nyawang No. 1, Bandung, 40132, Indonesia
*Corresponding author. Email: kiagusmuhammad_amrisamrullah@sbm-itb.ac.id
Corresponding Author
Kiagus Muhammad Amris Amrullah
Available Online 29 September 2023.
DOI
10.2991/978-94-6463-234-7_38How to use a DOI?
Keywords
Out of Stock; Demand Forecasting; Inventory Management; Warehouse
Abstract

A distributor of agricultural products sells Rockwool, which is imported from the Netherlands. The problem faced by the distributor is the product that is often out of stock resulting in a reduced customer service level. This research aims to overcome the out stock of Rockwool products by proposing a forecasting and inventory management system. The method used is by comparing 8-time series analysis methods based on the last 3 years and comparing 3 models of the inventory management system based on the last 1 year. The forecast method is determined based on the smallest forecast error, and the inventory management system is determined based on a model that applies to the company. The result showed that simple exponential smoothing with an alpha of 0.38 was chosen as the forecast method, and the fixed order quantity model was chosen as an inventory management system. Besides ensuring stock availability, this result also provides cost savings.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
29 September 2023
ISBN
978-94-6463-234-7
ISSN
2352-5428
DOI
10.2991/978-94-6463-234-7_38How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Kiagus Muhammad Amris Amrullah
AU  - Gatot Yudoko
PY  - 2023
DA  - 2023/09/29
TI  - Proposed Forecasting and Inventory Management System to Reduce Out of Stock: A Case Study of Distributor of Agricultural Product
BT  - Proceedings of the 7th Global Conference on Business, Management, and Entrepreneurship (GCBME 2022)
PB  - Atlantis Press
SP  - 382
EP  - 388
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-234-7_38
DO  - 10.2991/978-94-6463-234-7_38
ID  - Amrullah2023
ER  -