The Effectiveness of Inventory Management towards Production in PT. X
The purpose of this research is to analyze the effectiveness of inventory management in a dairy company in Indonesia, PT. X. the research on the study is classified into qualitative approach, starting from in-depth interview and gathering data from the company. Based on the study, it is concluded that PT. X has its method to conduct appropriate inventory practices. However, PT. X has not really successful to implement best of inventory practices in some parts of the inventory system. According to the data obtained, unhealthy stock occurs resulting high inventory level in a certain period of time. Therefore, implementing Kanban system is suitable to solve this problem. It identifies items in process and between processes and provide information to shows what, when and how many items previous process should supply to the next process. Reducing lead time can help to minimize the high inventory level, and developing partnership network with reliable suppliers and customers to present the best delivery performance to the company.
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