Citation:

Ari Widyatmoko, Gatot Yudoko. "Proposed Inventory Management System to Reduce Slow Moving and Deadstock Level at PT. Pertamina JOB Tomori" International Research Journal of Economics and Management Studies, Vol. 3, No. 1, pp. 171-183, 2024.

Abstract:

This research focuses on JOB Tomori, a prominent gas producer in Indonesia, grappling with inventory management issues, particularly high levels of slow-moving and deadstock materials. The study aims to identify factors contributing to this problem and propose effective strategies for optimization. The root cause analysis reveals two main issues: the “run-to-failure” practice among end-users and the incomplete categorization of Material Criticality Ratings (MCR). Process-based, people-based, and technology-based solutions are proposed to address these challenges. Process-based solutions include the formulation of a process for MCR categorization and an evaluation of the current MCR categorization. People-based solutions involve training and awareness programs for end-users, emphasizing proper inventory management practices. Technology-based solutions encompass the implementation of an early warning system and the installation of banners or signs displaying real-time information about slow-moving and deadstock items. In conclusion, the research recommends a comprehensive approach involving the immediate implementation of short-term solutions, such as training and awareness, developing rewards and punishments, and evaluating MCR categorization. Long-term solutions, like integrating an early warning system, should be pursued within the next 1-2 years. These recommendations aim to enhance JOB Tomori’s inventory management practices, aligning with industry regulations and ensuring efficient operations while minimizing the risk of slow-moving and deadstock materials.

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Keywords:

Material Management, Inventory, Slow Moving, Deadstock, Oil and Gas.