GUNUNG AGUNG BOOKSTORE

Oleh:
Catharina Laura (1606911401)
Irene Threcelia (1606911446)
Paridatul Mahmudah (1606832044)
Vitha Masyita Ramli (1606950503)

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS INDONESIA
2017
Table of Contents
PROLOGUE 3

STATEMENT OF AUTHORSHIP 4

CHAPTER I 5

CHAPTER II 7

CHAPTER III 13

REFERENCES 14

APPENDIX 15

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 PROLOGUE

Thank to Almighty God who has given His bless, the writer can complete
"Gunung Agung Bookstore Inventory Management". This report can also be finished
with the help and guided of various parties. For that, the writer thank as much as
possible to all parties involved in writing this paper.

The writer is aware in writing this paper there are still many mistakes.
Therefore, the writer apologize to the readers as well. Providing constructive criticism
and suggestion from readers is necessary for better paper writing. Hopefully this
paper can be useful and useful for us all.

Depok, 1 November 2017

Writer

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 STATEMENT OF AUTHORSHIP

I, the undersigned, declare that the papers or assignments attached are purely
my own work. No other people's work I use without mentioning the source.
This material is not or has never been presented or used as material for papers
or tasks on other subjects unless I state clearly that I am using it.
I understand that the tasks I am collecting can be reproduced and / or
communicated for the purpose of detecting plagiarism.

Catharina Laura Irene Threcelia

1606911401 1606911446

Paridatul Mahmudah Vitha Masyita Ramli

1606832044 1606950503

Subject : Introduction: Management Operation

Paper Title : Inventory Management Gunung Agung Bookstore
Date : 1 December 2017
Lecturer : Dr. Ir. Rosiwarna Anwar, M.A

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 CHAPTER I
Preliminary

I.Background
Inventory management is a related activity planning, execution, and
supervision of material requirements determination so that Operation Needs
can be fulfilled in time and inventory can be optimally pressed. It aims to
achieve efficiency and optimal effectiveness in the supply of materials, due to
inner inactivity inventory data can be detrimental to the company.
Inventories carry a very high inventory cost, and wrong calculations
will result in goods piled up too long in warehouse so as to cause damage or
goods not available
when needed. One of the factors that support the smoothness of the production
process is the availability of finished goods in the right amount and time.
Therefore to support the smoothness of production and distribution needs to be
done planning and controlling of inventory
In planning everything in the company, quality is a matter to note. In
this era of globalization, the competition between companies that are engaged
in the same industry is very strict, every company should be able to guarantee
the quality of products and services they offer in order to remain in the market.
Quality Management is the totality of features and characteristics of a product
or service that bears on its ability to satisfy stated or implied needs. Quality
management is one of the key to the company can remain successful in
attracting customers in the market.

II. Formulation of the Problem

As for some formulation of the problem that we will discuss are:
1. What are the inventory types in Toko Gunung Agung?
2. How did Gunung Agung Shop arrange their inventory?
3. How Gunung Agung Bookstore do their inspection?

III. Writing Purpose

As for some of our purposes in writing this final assignment that is:
1. To fulfill the final task of Introduction to Operations Management

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2. Knowing the implementation of inventory management in a business
3. Knowing the implementation of quality management in a business

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 CHAPTER II
Data Collection and Analysis Results

I.Inventory Management of Gunung Agung Bookstore

Gunung Agung Bookstore only has Finished Good Inventory because
they do not produce direct books or stationery and office equipment they sell.
The flow of goods they produce is the same across all branches. Goods come
from Distribution Center and Suppliers who directly deliver the goods to their
place. Accommodation delivery of goods is not a problem for Gunung Agung
Bookstore. Some of the incoming goods will be directly used as display on the
shelf as a display for potential buyers, and some of the remaining items (of the
same type) are stored in the warehouse. If the goods on display shelves begin
to thin out or depleted then the goods in the warehouse will be issued and
arranged in order to the buyer know that the goods are still there.
Gunung Agung Bookstore itself arranges every item based on certain
categories. For example arranging a book based on several categories such as
novels, religion, education and others. For stationery and some other devices
also have a shelf with a certain category. This is done with the aim to facilitate
the buyer when they want to find something they need easily.
For small items, Gunung Agung Bookstore does not store its inventory
in the warehouse, everything is arranged as a display. although it seems like a
pile up but the Gunung Agung Strives to keep the layout of these items still
looks good and pleasing to the eye. As for the goods with large size, some are
stored in the warehouse and some are used as displays because it is impossible
that large items are collected in a rack and used as displays, it is very
unpleasant views.
In addition to calculating the existing inventory, Gunung Agung
Bookstore commissioned several employees to calculate and monitor routinely
the number of items on the display and in the warehouse. Managers
themselves have set the standard number of goods on the display, if the
number of goods on the display left a little then the employee in charge of
recording the amount of inventory will immediately give a warning to
employees who manage inventory in the warehouse. The process of recording
the number of items on display and in the warehouse is done every day

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continuously every period. This is done so that there is no shortage of
inventory either in display or in warehouse.
For cases such as buyers who run out of inventory, they can directly
report to the Gunung Agung Bookstore and then they will be asked for a
phone number to call. If the number of books that are wanted a lot, then
Gunung Agung Bookstore will ask directly to their suppliers, but if the
number is small then Gunung Agung Bookstore will request supplies from
their branches elsewhere. They will do their utmost to provide the books their
buyers are looking for.
Inventory of Gunung Agung Bookstore which is too long made the
display is usually damaged, other than that the inventory in the warehouse also
some damaged for too long kept. The cause of damaged goods in the shop of
Gunung Agung there are some that is:
1. Tear off for too long on display
2. The book is not neat anymore because it is too often opened
3. There are also items that are ceramic, damaged by falling and breaking
4. And many more causes of damage to goods in Gunung Agung
Bookstore

To overcome the damage to books on the display usually the Gunung

Agung Bookstore will only allow 1 book open from plastic wrap, if more than
1 that is open then the books will be wrapped again plastic.
For the case of damaged or unfit goods sold, the management of
Gunung Agung Bookstore has its own policy. The defective item will first be
removed from the data or records of the company, but prior to deleting the
data, the defective items must be presented to management, after approval by
the management then the auditor removes the item data from their records.
After the data is deleted then the goods are executed. These items are usually
given to employees of Gunung Agung Bookstore because it is not possible to
give to the buyer.
Gunung Agung Bookstore manages the cost of inventory by looking at
certain circumstances such as lead time from different suppliers. If the
supplier has a fast service level then the ordering of supplies is done little by

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 little, but if the supplier has a slow service level then the ordering of inventory
is done directly in large quantities, this is also done to avoid stockout.
Besides paying attention to service level, Gunung Agung Bookstore
also pay attention to supplier system when making order, whether they are
returnable or unreturnable. Because suppliers with a returnable system are
profitable for Gunung Agung Bookstore if there are some items that do not
sell until the end of the period, non-salable goods can be returned to the
supplier. As for suppliers with unreturnable systems, Gunung Agung
Bookstore usually makes small orders, and even if at the end of the period
there are some that do not sell, then in the next period will be sold at a cheaper
price or given a discount.

II.Ordering of Inventory
Gunung Agung Bookstore has their own distribution centre, around
Pulo Gadung. From there, goods will be distributed to branches. But also there
are some suppliers that supply its goods directly to Gunung Agung Bookstore
Depok.
For ordering system, Gunung Agung Bookstore receive goods almost
everyday, every Monday to Saturday, except Sunday and holiday. The goods
are distributed from distribution centre after evaluation and planning from
Head Office. The evaluation by merchandising team happens because every
branches have different market, so it is necessary to find the best goods for
every market. This kind of evaluation is often for books, there will be stocks if
there is demand in that market. But total goods distributed also have to adjust
with the space of every store, how much could a store accommodate its goods,
means every branches have a different quantitiy and level of completeness.
For every goods that had been distributed from central to branches, the
goods will be the branches responsibility. Every branches of Gunung Agung
Bookstore have their rights to monitor the stocks, when to reorder, everything
is evaluated everyday. Gunung Agung Bookstore Depok use out going data
system, it send data to Head Office about how much demand needed to fulfill.
Head Office then will proceed to suppliers and publishers, so from them the
goods will be distributed back again.

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 There is a buffer stock, which is a lot of stocks that need special
handling, if we do not handle it seriously, we may run out of goods, so that in
our distribution center put items that have a character like this. For example
there is a book from famous authors, the tendency of each book launching the
request is immediately high, and between bookstore one with another
bookstore is seizure. It could be if we do not ask for more, if we run out, we
ask publisher but already out and have not reprint, to anticipate we run out
goods, we order a lot, we place it in the distribution center, so we have stocks
if the shops run out.

III.TQM Quality
Quality is The totality of features and characteristics of a product or
service that bears on its ability to satisfy stated or implied needs.
TQM is Encompasses entire organization, from supplier to customer
Stresses a commitment by management to have a continuing, companywide
drive toward excellence in all aspects of products and services that are
important to the customer.
There is 7 Seven Concepts of TQM:
1. Continuous improvement
Represents continual improvement of all processes Involves all
operations and work centers including suppliers and customers
People, Equipment, Materials, Procedures
2. Six Sigma
A program designed to reduce defects, lower costs, and
improve customer. Satisfaction. There are six key aspects to
note in the Six Sigma concept application:
a. Identify your customers.
b. Identify your product
c. Identify your needs in producing products for your
customers
d. Define your process
e. Avoid mistakes in your process and eliminate any
extravagance.

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 f. Improve your process continually toward Six Sigma
targets.
3. Employee empowerment
Is a learning process for employees using coaching, conseling
and so on.
4. Benchmarking
is a process commonly used in management or generally
strategic management, in which a unit / part / organization
measures and compares its performance against activities or
activities similar units / parts / other similar organizations both
internally and externally.
5. Just-in-time (JIT)

is an integration of a series of design activities to achieve high

volume production using minimum inventory for raw materials,
WIP, and finished products. JIT cuts the cost of quality JIT
improves quality ,Better quality means less inventory and
better, easier-to-employ JIT system

6. Taguchi concepts

This method is a new methodology in the field of engineering

that can improve the quality of products and processes.

7. Knowledge of TQM Tools

From the explanation above we can know this store using continuous
improvement concepts . For example, what happens because there is no book that
they are looking for at that time, the store takes care of it by the store will be
asked for a phone number or contacts that can be contacted by the store, this can
be for goods that are already available then people who complain will contacted
again, the shop will greatly seek products in the search by consumers. For
example in this case according to the managers we interviewed he would look for
the book in another branch shop if it is not in all branches of the Gunung Agung
branch store then the company will consider ordering to the supplier about the
product. This represents a company that is very confident of these things simply

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 because it wants to keep its customers to remain loyal to the store. If the goods
sold are not worth selling then the company will order or write-off the product
account on financial report. One more thing, to avoid damage to goods the shop
always evaluates the performance of its employees, From previous experiences
there are just a nosy customer, for example, open a book that is still in the pack if
it is not in the attention of employees then, over time the item will be damaged.

IV.Inspection
Gunung Agung bookstore has a lot of inventory, from big items like a printer
or book, to a small items such as stationery. In the business activity, the inspection of
inventory needs to be done carefully. Gunung Agung Bookstore conducts inspection
by doing stock opname once for 3 months. They often found the differences when
doing stock opname. There are many reasons why this is happening,it can be cause by
someone who steal the item, the exchanges in the barcode, and administrative errors.
Goods in Gunung Agung Bookstre using barcode in data management. Changes in
one line on the barcode can cause differences in data inputted at the cahier (when
customer pay for the product). This error can be minimized when the conditon are not
crowded so cashier can have time to check whether the book purchased by customers
the same as the input.
The differences in stock opname is included as risk in business world and will be
included in the cost component. The choice of once for 3 months is due to big cost
when doing stock opname. Stock opname takes a lot of time and energy. When doing
the stock opname,it will be attended by an external auditor and recorded and than will
be submitted to the management.

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 CHAPTER III
Conclution and Recomendation

Gunung Agung Bookstore only has Finished Good Inventory because it does
not directly produce the goods sold. Gunung Agung Bookstore usually make
reservations on certain suppliers with regard to service level and supplier system. In
regulating the inventory, Gunung Agung Bookstore keeps some goods, especially
large items in the warehouse and partly used as a display for the buyer to see. Our
suggestion for Gunung Agung Bookstore is that the Gunung Agung Bookstore should
use the reorder point system and estimate the order by using the probability of
customer demand so that it does not appear too often unsold goods, because after all it
triggers a loss for Gunung Agung Bookstore itself.
Ordering of Inventory of Gunung Agung Bookstore come from two types,
distributed by distribution central and by supplier or publisher. Once the goods
arrived at branches from Head Office, the goods are branches responsibility to take
care. Because they use out going data. If branches need to reorder, they can contact
the Head Office and it will proceed to distribution central or supplier or publisher.
Gunung Agung Bookstore also use continous improvement concepts to
manage its quality of products.
Inspection is an important thing to do, the cause of the difference in the stock
opname that happens can be minimized by train the existing workers, for example
workers at the cashier should trained to be more thorough/careful when on duty. Our
advice, Gunung Agung bookstore should add more cashier that can be used during
busy days, so the worker that work in cashier section can check the item that the
customer buy thoroughly .

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REFERENCES

Heizer, Jay, Render, Barry & Munson, Chuck. 2011. Operation Management:
Sustainability and Supply Chain Management 12th Edition. USA:
Pearson Education Inc.
Pardede, P.M. 2002. Manajemen Operasi dan Produksi. Andi Yogyakarta,
Yogyakarta.
https://ipqi.org/pemberdayaan-karyawan-strategi-peningkatan-kualitas-sdm-
bag-1/
https://www.academia.edu/4869484/BAB_1_KONSEP_TOTAL_QUALITY_
MANAGEMENT

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Appendix

A. List of interview questions:

 How is the history of Gunung Agung bookstore and it’s journey until
now?
 How many branches of the Gunung Agung bookstores has and where it
is?
 How long Gunung Agung bookstore has been in Depok and why
choose Margo Mall as a place to open a branch?
 How Gunung Agung bookstore decide to open a branch (the
procedure)?
 What location based decisions are used?
 Is there a grade classification for each store?
 How is the supply of goods (inventory) in Gunung Agung bookstore
and how about the ordering timing?
 How the inventory distribute by the head office?
 How the store handling the inventory after arriving at each store?
 How about the placement of each item in the Gunung Agung
bookstore?
 How to handling any unsold goods?
 If there is any damaged goods, what’s the causes and how to handling
that and how to avoid damage to the goods?
 It’s there any complaints that Gunung Agung bookstore are received
and how to fix them?
 What advantages does a Gunung Agung bookstore has? –
 How to check existing items (Inspection)?
 When the goods do not match (in the record and in the real time), why
it happen and how is the solution?

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B. interviewees:

Name : Fatah Yasin

Position : Store Manager

Phone Number : 087878503713/ 08568224125

C. Company Profile

Name : Toko Gunung Agung

Company birthday : 8 September 1953

Founder : Tjio Wie Tay / Haji Masagung

Branch : 17 (Jakarta, Semarang, Surabaya)

Head office : Jl. Kwitang No. 6, Jakarta Pusat,Indonesia

Motto : “Perintis usaha mencerdaskan bangsa”

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Organizational structure

Photo with the manager

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