INVENTORY CONTROL ANALYSIS WITH ABC CLASSIFICATION, SAFETY STOCKAND REORDER POINT IN SPARE PARTS DISTRIBUTOR COMPANY

Abstract

Inventory control problems are crucial issues often faced by heavy equipment
distributors that provide various types of spare parts and supporting
components. Inaccuracy in managing the availability of goods can hamper
after-sales service, which ultimately reduces customer satisfaction levels.
Conversely, excess inventory has the potential to cause wasteful storage costs,
stockpiling, and increased risk of damage or obsolescence of goods. This study
aims to evaluate the inventory control system implemented by the company
through the ABC classification approach, considering the determination of
safety stock and the application of reorder points as part of the inventory
optimization strategy. The results of the analysis show that the application of
the ABC classification method can increase the accuracy of demand estimates
by up to 84%, which has a positive impact on increasing the company's
profitability. However, safety stock management still shows weaknesses,
especially in the fast-moving goods category, where the inventory level
approaches zero. This condition has the potential to cause delays in delivery to
consumers. Therefore, a review and improvement of inventory control policies
are needed to ensure the continuity of service and the overall operational
efficiency of the company.