Inventory Management and Performance of SMES in the Manufacturing Sector in West Java Province, Indonesia

Inta Budi Setya Nusa

ICOBEST 2020 - New Era, the Trend towards Global Challenge after Covid-19 Pandemic - ISBN 978-623-95562-0-4


This study is to assess the effectiveness of the inventory management system (IM) used by SMEs in the West Java province of Indonesia. Inventory management is one of the studies in management accounting. with the aim of providing convenience in checking the remaining stock inventory, reducing the risk of delays in shipping goods to consumers and production schedules can be adjusted by the company. This study consisted of a population of manufacturing SMEs whose respondents were selected purposively from the companies selected by the researcher. This study used a descriptive qualitative research design. This research also uses a purposive sampling technique. The sample size used was 102 respondents. The tool used in this research is SEM-PLS. The results showed that most SMEs in managing inventories used the Economic Order Quantity (EOQ) system which was based on previous sales data and there were still SMEs in managing their inventory that was not computerized so that SMEs using the EOQ method faced challenges in the supply chain due to the level of fluctuation in demand. Sales that change frequently Based on these findings, the researcher concludes as well and proposes a request for further study of the factors affecting EOQ in SMEs to increase clarity.The first section in your paper

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