Abstract:

The inventory management of a rigid packaging wholesale shop is quite complex. Especially those selling products that are actually a combination from two or more parts like bottles and their caps. The caps are usually available in different colors from which the customers can choose according to their preferences. Arena Software was used to simulate a model based on inventory management system on a selected product set. The simulation of the original model enhances the understanding of the existing system in the wholesale shop. The second model then developed by modifying the original model. The simulation results show a significant total demand lost reduction, an increase in service level, a potential additional revenue, as well as lowering the number of lost customers. This study provides new understanding of inventory management system for products that can be and how to improve it. The value of this study is not limited to rigid packaging products, but also in other products that consist of parts that can be combined as requested by the customers.