Product inventory control at a local brand forum outlet using ABC analysis

Sintia Putri Pradita, Kuncoro Harto Widodo


A local brand forum outlet sells Micro, Small, and Medium Enterprises (MSMEs) products with inventory management still carried out manually based on employee experience. The research objectives are to analyze problems related to the inventory system and provide recommendations for planning and controlling inventory systems at a Local Brand Forum (FBL) outlet. Primary data was collected through observation, in-depth interviews, and Focus Group Discussion (FGD). The method used is ABC analysis to obtain the product classification. The results showed that 16 items (19.05%) are included in class A, with a total sales value of 69.55% of the total value for money. Class B has 25 product items (29.76%) with a total sales value of 20.29% of the total value for money. Products in class C are 43 items (51.19%) with a total sales value of 10.16% of the total value for money. As much as 43.75% of products in class A are nine basic commodities which are the basic needs of the Indonesian people, so they have a high priority in inventory control. These results are expected to provide planning and inventory control systems using the ABC class of products to avoid shortages and overstock inventory.


ABC Analysis; Inventory Management; Local Brand Forum; MSMEs

Full Text:



Abdolazimi, O., D. Shishebori, F. Goodarzian, P. Ghasemi, and A. Appolloni. 2021. Designing a new mathematical model based on ABC analysis for inventory control problem: A real case study. RAIRO - Operations Research 55(4).

Braglia, M., R. Gabbrielli, L. Marrazzini, and L. Padellini. 2022. Key Performance Indicators and Industry 4.0 - A structured approach for monitoring the implementation of digital technologies. Page Procedia Computer Science.

Brandtner, P., F. Darbanian, T. Falatouri, and C. Udokwu. 2021. Impact of COVID-19 on the customer end of retail supply chains: A big data analysis of consumer satisfaction. Sustainability (Switzerland) 13(3).

D. Annie Rose Nirmala, Vijila Kannan, M. Thanalakshmi, S. Joe Patrick Gnanaraj, and M. Appadurai. 2022. Inventory management and control system using ABC and VED analysis. Page Materials Today: Proceedings.

Foster, J., C. Deck, and A. Farmer. 2019. Behavioral demand effects when buyers anticipate inventory shortages. European Journal of Operational Research 276(1).

Gabor, A. F., J. K. van Ommeren, and A. Sleptchenko. 2022. An inventory model with discounts for omnichannel retailers of slow moving items. European Journal of Operational Research 300(1).

Hamdani, J., and C. Wirawan. 2012. Open Innovation Implementation to Sustain Indonesian SMEs. Procedia Economics and Finance 4.

Jilcha Sileyew, K. 2020. Research Design and Methodology. Page Cyberspace.

Ketzenberg, M., R. Oliva, Y. Wang, and S. Webster. 2023. Retailer inventory data sharing in a fresh product supply chain. European Journal of Operational Research 307(2):680–693.

Khanorkar, Y., and P. V Kane. 2022. Selective inventory classification using ABC classification, multi-criteria decision making techniques, and machine learning techniques. Page Materials Today: Proceedings.

Kumar, S., and A. Chakravarty. 2015. ABC-VED analysis of expendable medical stores at a tertiary care hospital. Medical Journal Armed Forces India 71(1).

Liu, F., and N. Ma. 2020. Multicriteria ABC inventory classification using the social choice theory. Sustainability (Switzerland) 12(1).

Maksum, I. R., A. Y. Sri Rahayu, and D. Kusumawardhani. 2020. A social enterprise approach to empowering micro, small and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity 6(3).

Malindzakova, M., and D. Zimon. 2019. Design supply cycle for inventory management. TEM Journal 8(3).

Maulidya, R., R. Rizaldi, and E. Saputra. 2021. Metode Least Square Sebagai Prediksi Penjualan Sembako di Toko Suryono. J-Com (Journal of Computer) 1(3).

Nashih, A. S., K. H. Widodo, and D. Ismoyowati. 2016. Inventory Level Analysis of Horticultural Commodities Exported by PT BSL from Central Java Indonesia to Singapore. Page KnE Life Sciences.

Oladele, T. O., R. O. Ogundokun, A. A. Adegun, E. A. Adeniyi, and A. T. Ajanaku. 2021. Development of an inventory management system using association rule. Indonesian Journal of Electrical Engineering and Computer Science 21(3).

Pradita, S. P., P. Ongkunaruk, and T. Leingpibul. 2020. Utilizing an intervention forecasting approach to improve reefer container demand forecasting accuracy: A case study in Indonesia. International Journal of Technology 11(1).

Ricci, R., D. Battaglia, and P. Neirotti. 2021. External knowledge search, opportunity recognition and industry 4.0 adoption in SMEs. International Journal of Production Economics 240.

Rizqi, Z. U., and A. Khairunisa. 2020. Integration of deterministic and probabilistic inventory methods to optimize the balance between overstock and stockout. Page IOP Conference Series: Materials Science and Engineering.

Sasanuma, K., A. Hibiki, and T. Sexton. 2022. An opaque selling scheme to reduce shortage and wastage in perishable inventory systems. Operations Research Perspectives 9.

Sasongko, D. 2020, August 24. UMKM Bangkit, Ekonomi Indonesia Terungkit. UMKM Bangkit, Ekonomi Indonesia Terungkit.

Shah, J. 2009. Supply Chain Management: Text and Cases. India: Pearson Education.

Shamim, K., S. Ahmad, and M. A. Alam. 2021. COVID-19 health safety practices: Influence on grocery shopping behavior. Journal of Public Affairs 21(4).

Sonobe, T., A. Takeda, S. Yoshida, and H. T. Truong. 2021. The Impacts of the COVID-19 Pandemic on Micro, Small, and Medium Enterprises in Asia and Their Digitalization Responses. SSRN Electronic Journal.

Taherdoost, H. 2019. What Is the Best Response Scale for Survey and Questionnaire Design; Review of Different Lengths of Rating Scale / Attitude Scale / Likert Scale. International Journal of Academic Research in Management (IJARM) 8(1).

Tambunan, T. T. H. 2011. Development of micro, small and medium enterprises and their constraints: A story from Indonesia. Gadjah Mada International Journal of Business 13(1).

Torkul, O., R. Yılmaz, H. Selvi, and M. R. Cesur. 2016. A real-time inventory model to manage variance of demand for decreasing inventory holding cost. Computers & Industrial Engineering 102:435–439.

Wahyuni, T. 2016. Penggunaan analisis abc untuk pengendalian persediaan barang habis pakai : studi kasus di program vokasi UI. Jurnal Vokasi Indonesia 3(2).

Wild, T. 2017. Best Practice in Inventory Management. United States: Taylor & Francis.

Zhang, Z., K. W. Li, X. Guo, and J. Huang. 2020. A probability approach to multiple criteria ABC analysis with misclassification tolerance. International Journal of Production Economics 229.




  • There are currently no refbacks.

Copyright (c) 2024 Sintia Putri Pradita, Kuncoro Harto Widodo

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.