The Effects of Epoxy Mold Compound Inventory Management to the Productivity of XYZ Company

Abstract

The main objective of the study was to assess the effects of product inventory management to the productivity of XYZ Company. The said studies were conducted in August-September 2018. Based on the findings, it was found that most of the respondents or workers directly involved with EMC (employees are 20 to 30 years old, female, college graduates, had rank and file position with tenure of 5 years and below. The assessment of the respondents regarding the level of agreement on the effects of inventory management is "neutral" in terms of utilization and customer satisfaction. On the other hand, respondents had "agree" perception in terms of production cycle time and productivity. This means that inventory management affects the productivity of the XYZ Company. Also, forecast and actual demand changed dynamically. In 2016, most of the actual monthly demand shows a lower requirement than forecast, which indicates enough inventory. In 2017, the forecast versus actual demand showed a gap, which means insufficient inventory. Any discrepancy of forecast and real demand has effects on the productivity of the company. Moreover, the assessment of the respondents concerning the level of seriousness of the identifier problems encountered in the inventory management is "neutral" in terms of incoming delivery, on-hand stocks, and expired materials. This study shows that inventory management has a significant impact on the productivity of accompanying, particularly in the electronics industry. Accurate demand forecasting provides precise planning that allows the desired inventory proportions to be dynamic by determining expected sales out into the future; this decides for inventory to being proportion to expected short-term sales or consumption rather than to past averages, a much more accurate and optimal outcome. Integrating demand forecasting into inventory management in this way also allows for the prediction that suitable in the inventory storage and customer requirement. Right timing of delivery provides correct of replenishments, which prevents a shortage of potential profits loss of the company. Nevertheless, good inventory will provide good revenue and satisfaction internal and external customer