INVENTORY MANAGEMENT OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN FASHION INDUSTRY (A CASE STUDY IN WEAR.LABEL)

Sesaria Mardhiani Rachma Puspita, Sifa Nurul Islam, Sekar Widyastuti Pratiwi, Dimas Falah Prasetio

Abstract


In this modern era, there are many Small and Medium Enterprises (SMEs) that produce shirts, t-shirts, and pants for young people. Most of SMEs produce their product with home-based production that has not used an inventory management system. Inventory Management is one of the functions that can be solved by quantitative calculation methods. WEAR.LABEL is one of SMEs in the fashion sector in Jakarta-Indonesia, which processes fabric which is used as a raw material to become finished goods such as clothes, pants, and other accessories. WEAR.LABEL is one of the SMEs that has not used inventory management to manage their raw material. In this study, we determine the optimal quantity and total inventory cost for Casual Culotte products and re-order point for the raw material. Based on the results of the study, it was concluded that the cheapest total inventory cost was by choosing the 4th discount price of Rp 25.000 which resulted in a total inventory cost of Rp 89.326.139 and the optimal quantity was 594 Meters and the optimal ordering time based on the analysis that has been done. This is done by using the Re-Order Point method, which is when the inventory is at 421 meters.


Keywords


Inventory Management, EOQ, Quantity Discount factor, SMEs, Fashion Sector, Re-Order Point

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References


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DOI: https://doi.org/10.25292/atlr.v5i0.477

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