INVENTORY

MANAGEMENT IN CV
AHASS BINONG
 Our Team

Cindy Eka Malia Michael Fumar Rona Mentari Xaviera Lovieta H

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 Table Of Content
Company Background

Company Profile

Table Of Definition of Inventory

Content The Importance of Inventory Control

Problem Identification

Solution
 Company Background
Indonesians use motorcycles as the main means of
transportation. As of 2022 Honda is one of the market
leader of motorcycle brands in Indonesia with a market
share of 77.6%.

PT Astra Honda Motor is part of PT Astra Internasional Tbk.

that operate as the distribution and retail sales of Honda
brand.

PT Astra Honda Motor offers mobility solutions for the

community with the best products and services to help the
community for their businesses and achieve their goals.
 Company Profile
CV. Ahass Binong is a branch of PT Astra Honda Motor, which runs in the
transportation sector that offers special motorcycle services for Honda users.
The company was founded in 2005 until now, CV. Ahass Binong already has 15
employees. CV Ahass Binong provides the following services:
a). Maintenance and repair,
b). Heavy repair,
c). Periodic maintenance of new motorcycles, and
d). Honda genuine parts.
 Inventory
Inventory is supplies that a company plans to resell to clients for a profit.
Inventory management is the process of tracking inventory from producers
to warehouses and from these locations to a point of sale.
There are three fundamental steps in inventory management :

Buying inventory
Storing inventory
Profiting inventor
The The decoupling function
Importance Of Storing resources

Inventory Irregular supply and demand

Quantity discount

Control Avoiding stockouts and shortages

 Inventory Methods
LIFO
FIFO
(First In First Out) (Last In First Out)

is a method used to
is an inventory method
account for inventory that
that assumes the first
records the most recently
goods purchased are the
produced items as sold first.
first goods sold

The inventory method that CV Ahass Binong use is FIFO method because several item use
rubber materials, so they cannot be stored in warehouse for too long or their elasticity can
be damaged
Economic Order Quantity
Quantity Re-order Point Discounts

EOQ is the optimal Reorder point is the A quantity discount is a

number of units a quantity of inventory promotion given to
business should buy to that a company must buyers that lowers the
fulfill demand while keep on hand in order to price per unit of products
reducing inventory. avoid having too many or or materials when
too few items available purchased in large
for sale. quantities.
 shortage of goods during certain
seasons such as during the
holidays and during the long
Christmas holidays.

Problem
Identification over stocking that cause the
holding cost incurred to be
greater than normal

Inventory management is still

not optimal so the company's
shipping costs increases
 Economic Order
Quantity Annual Demand Rate : 6655 unit
Setup Cost : Rp25.000
Lead Time : 2 Days
Price per Unit : Rp52.300
Holding Cost : Rp5000

EOQ : 258 unit

Average Inventory : 129 unit
Annual Inventory Holding Cost :
RP644.932
Total Annual Inventory Cost :
Rp1.289.864

Source data from CV AHASS Binong 2022 Time between Orders : 14 days
 Quantity Discount
EOQ : 401 unit
Average Inventory : 200 unit
Annual Inventory Holding Cost :
Rp1.002.500
Total Annual Inventory Cost :
Rp332.071.100

QM Suggestions

Source data from CV AHASS Binong 2022

 EOQ Graph

Quantity Discount
Solution
Company should avoid ordering too much products
01 because the disount does not cover the holding cost

Company should avoid multiple order to minimize the

02 shipping cost

Company should forecast the amount of products

03 needed during peak season

Presentation by
Thank you