Determining Inventory Management Policy for Perishable Materials in Roemah Keboen Restaurant

Roemah Keboen is a company engaged in restaurant industry that faces an inventory management of wasted materials because the materials have shelf life or expired time and can perish on a fixed time. This study was conducted to find appropriate policy to improve Roemah Keboen inventory management and solve the problem that Roemah Keboen faces. The step to improve inventory management of Roemah Keboen starts from describing the business process of Roemah Keboen. By describing each process, the root causes of the problem can identified and analyzed. The root cause occurs in Roemah Keboen is the executive chef conducted the responsibility of determining the amount of materials ordered and timely scheduling of orders in a subjective manner. It makes the wasted materials number is on high level. The proposed solutions are based on periodic review policy and continuous review policy. The best policy selected after calculating the total cost of each policy and comparing the two policies as well as considering their outdated and lost sales cost. Overall, the continuous review policy gives a lower cost after the policy is compared with the periodic review policy and current system. (C) 2012 Published by Elsevier Ltd.