Analysis of Just-in-Time Inventory Management in Retail Companies to Reduce Operational Costs

Abstract

This study aims to analyze the implementation of Just-in-Time (JIT) inventory management in retail companies to reduce operational costs. The method used in this study is a descriptive design with a survey approach and structured interviews with ten retail companies, five of which implement the JIT system and five others use traditional inventory management methods. The data collected includes financial reports, inventory records, and interviews with operational and supply chain managers.

The results showed that companies that implemented JIT managed to reduce inventory holding costs by an average of $300,000 and operational costs by $500,000. In addition, JIT companies experienced an increase in stock turnover frequency and a reduction in the incidence of shortages. However, JIT implementation faces challenges in terms of coordination with suppliers and technology investment.