International Journal of Business and Applied Economics (IJBAE)
Vol. 4 No. 1 (2025): January 2025

Reduction of Raw Material Inventory Costs with an Operational Management Approach for Beverage Products at Loca Coffee

Chalid, Abdul (Unknown)
Handayani, Wiwik (Unknown)



Article Info

Publish Date
16 Jan 2025

Abstract

Facing significant demand fluctuations has resulted in Loca Coffee experiencing a surge in inventory costs, a lack of control over raw material inventory, and suboptimal service quality. To assist the company, this study aims to reduce inventory costs, minimize order frequency, and improve service quality. To achieve these objectives, an operational management approach is applied in this research. One of the inventory control techniques, Material Requirements Planning (MRP), will be utilized. In implementing an effective MRP system, the Holt-Winter and SARIMA methods will be applied in the forecasting process. Machine learning techniques will be employed for the forecasting model using time series sales data of Loca Coffee products, with Python programming language. As long as the approach is carried out in the appropriate manner, the findings of the research indicate that the implementation of an inventory control system that is based on MRP was successful in achieving a reduction in costs of Rp 10,335,500, a significant decrease in the frequency of orders, and an improvement in the quality of service

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Journal Info

Abbrev

ijbae

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

International Journal of Business and Applied Economics (IJBAE), is an international peer-reviewed journal that is aimed to be an international forum and platform for disseminating high-quality business, management, and economic-related researches, by Formosa Publisher. IJBAE seeks to publish ...