Inventory Control to Reduce Product Damage Using the Periodic Order Quantity (POQ) Method at PT Indomarco, Indomaret Abdul Muis Branch

Abstract

This study aims to analyze the inventory control system at PT Indomarco, Indomaret Abdul Muis branch, in order to reduce product damage and minimize costs resulting from overstocking. A descriptive method with a quantitative approach was used to evaluate return and sales data from 2022, comparing the company’s current policy with the Periodic Order Quantity (POQ) method. The results show that the current company policy, with 180 delivery frequencies per year, incurs a total inventory cost (TIC) of IDR 43,150,000 annually. In contrast, the proposed POQ method, with 24 deliveries per year, results in a significantly lower TIC of IDR 2,585,625. It is concluded that implementing a structured inventory model can reduce costs by over 94%. The POQ method is recommended as the most balanced solution between cost efficiency and smooth store operations.